Hyperliquid Outlook 2024: Why the HYPE Price Could Drop – Key Technical Warnings

Is HYPE Losing Momentum? The Daily Chart Tells a Worrying Story

HYPE has been stuck in a sluggish sideways trend for weeks, barely clinging to a slight upward bias. Right now, the price is testing an orange resistance zone where selling pressure has already emerged. This reaction confirms structural weakness – the market clearly lacks the juice to push higher. If the current pace holds and HYPE nears the 50-day EMA, a drop back to the green support zone becomes likely. Data from TradingView’s liquidation heatmap adds weight to this scenario: a massive liquidity pool sits below the current price, acting like a magnet for downward moves. Meanwhile, recent sell-offs have stacked liquidity above the price, creating a volatility trap. bitcoin remains the wildcard; a dip toward $90,000 could force HYPE to defend its structure or face renewed selling.

RSI and Volume Flash Red: Are Traders Losing Interest?

The Relative Strength Index (RSI) can’t sustainably crack the 50 level, underscoring bearish momentum. At the same time, altcoin volume is drying up – a classic sign of fading risk appetite. Unless HYPE reclaims its resistance zone and stabilizes momentum indicators, the risk of another leg down stays elevated. As one BTCC analyst put it, "This isn’t a market for the impatient. The setup screams caution."

4-Hour Chart: A Glimmer of Hope or a Bull Trap?

Zooming into the 4-hour frame paints a slightly brighter picture. The 50-EMA is holding as dynamic support, offering a chance for stabilization. If Bitcoin’s mood improves, HYPE might even challenge the 200-EMA and break overhead resistance. But here’s the catch: the price must form a higher low without breaching the prior local bottom. Liquidation levels reveal a fat stack of positions below the current range – a potential volatility bomb. As long as HYPE stays above the 50-EMA, bulls have a shot. A clean break above the 200-EMA WOULD strengthen their case, while losing the current structure invites another sell-off.

Why Liquidity Pools Are the Hidden Game Changer

Crypto markets MOVE where liquidity sits, and HYPE’s heatmap shows two critical zones. The dense cluster below acts like a "stop hunt" target for bears, while the overhead liquidity could trigger short squeezes if cleared. This imbalance explains why price swings might intensify. Pro tip: Watch CoinMarketCap’s order book depth for real-time shifts in these pools.

Bitcoin’s Shadow: How BTC’s Next Move Dictates HYPE’s Fate

No altcoin escapes Bitcoin’s gravity. If BTC corrects to $90k, HYPE’s resilience will be tested. Historically (see 2023’s Q2 pullback), altcoins underperformed during BTC dips. However, a bullish BTC breakout could drag HYPE upward – though its weak RSI suggests it might lag the pack.

Trading Plan: Key Levels to Watch

Hold above 50-EMA (4-hour) → Break 200-EMA → Target resistance flip.
Lose 50-EMA → Retest support zone → Liquidity grab downward.