Hyperliquid Saw Intense Bearish Momentum in March

Steady selling pressure revealed that a price bounce would likely get retraced quickly.

Hyperliquid [HYPE] fell below the $18.5 support level on 03 March. The bulls had established this level as support in January and defended it robustly for two months. Market sentiment and selling pressure behind HYPE forced deep losses over the past two weeks.

The decentralized exchange (DEX) token’s decline was not halted by whale purchases. Recently, a whale trader who caused a $4 million loss to Hyperliquid’s HLP vault re-emerged, fueling debate among analysts about repeatable, profitable patterns.

One effective way to combat this problem is to reduce leverage limits, which could hurt business and negatively impact HYPE’s price.

Can Hyperliquid Prices Leap to $20.3 in the Coming Days?

The 12-hour chart illustrated strong bearishness behind HYPE. The market structure has been bearish since mid-February after falling below the $22.2 level. The loss of $18.5 cemented the next leg south.

This was accompanied by an OBV in freefall, indicating heavy selling volume. The RSI also remained below 50, and hovered below 40 for most of March, reflecting intense bearish momentum on this timeframe.

The $12-support level was tested briefly in the second week of December. HYPE saw another reaction from it recently. It was unlikely that a bullish reversal was underway; rather, the upcoming bounce would likely just be a liquidity grab.

To break the bearish structure, HYPE would have to climb beyond $21.5 and $24.95. Until then, the bearish bias in the medium term would remain.

The liquidation map revealed a cluster of high-leverage liquidation levels around the $14.84-region. Since liquidity attracts prices, a short-term price bounce to $14.8-$15 is likely to occur over the weekend. Monday could see the gains wiped out and another move to the $12.1 support commence – potentially falling lower.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.