Date: Mon, February 24, 2025 | 05:16 AM GMT
The cryptocurrency market is witnessing a wave of selling pressure, with major altcoins experiencing a downturn as Bitcoin (BTC) dominance rose by 0.84% over the past 24 hours. This surge in BTC dominance has put additional strain on altcoins, leading to bearish momentum across the market.
Hyperliquid (HYPE), a decentralized exchange (DEX) built on its own Layer-1 blockchain, has not been immune to the pressure. The token saw a sharp 9% decline today, pushing its price to a critical support level.
Source: Coinmarketcap
Testing the Symmetrical Triangle’s Support
Hyperliquid (HYPE) had an impressive bull run in late 2024, rallying over 200% and reaching a peak of $35.37 on December 21. However, following this strong surge, the price entered a correction phase, forming a Symmetrical Triangle—a pattern that typically signals either continuation or reversal depending on the breakout direction.
Hyperliquid (HYPE) Daily Chart/Coinsprobe (Source: Tradingview)
The recent rejection from the upper resistance of the triangle and a breakdown below the 25-day moving average (MA) have now brought HYPE to a crucial test of the lower support trendline near $21.40. This level has previously acted as a strong support, triggering rebounds in the past, and the price is currently hovering around $21.85.
If this key support holds, we may see a bounce back toward the upper resistance of the triangle, potentially setting up for a breakout. A successful break above this resistance could resume HYPE’s bullish momentum and push the price toward new highs.
However, failure to hold the $21.40 support could result in a further decline, with the next key support sitting at $18.54. A breakdown to this level could indicate the formation of a descending channel pattern, increasing the chances of a recovery from the support.
Final Thoughts
Currently, the MACD (Moving Average Convergence Divergence) indicator is showing signs of bearish momentum. The MACD line has crossed below the signal line, and the histogram is printing red bars, indicating increasing selling pressure. This suggests that, in the short term, HYPE might continue to face downside risk unless buyers step in to defend the support zone.
Given the broader market uncertainty and Bitcoin’s increasing dominance, traders should closely watch how HYPE reacts to this critical support. A decisive move in either direction will likely determine the next major trend for the token.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
