HYPE falls to $86 after losing key support, next major level at $81

Short-term trend breaks

For several weeks, traders repeatedly relied on the green short-term moving average as a reliable trend guide. Buyers successfully defended this level in early September, especially as HYPE rebounded from approximately $75 and surged toward $98. However, this support has failed, with the latest daily candle closing beneath the average, and the token now finding it difficult to retake this critical level.

The breakdown is evident in the price structure. After reaching its local high, HYPE recorded a sequence of lower highs and a significant red candle, wiping out gains from previous sessions in one swift move. The loss of a longstanding support zone is often considered an early indicator that momentum may be shifting away from buyers and toward sellers.

After losing the short-term average, HYPE now faces the challenge of regaining support as its trend dynamic changes, with sellers gaining the upper hand following a rapid reversal from recent highs.

Technical indicators and volume trends

The Relative Strength Index (RSI), a popular momentum gauge, has fallen from its upper region to approximately 50. This signals that the recent bullish momentum has dissipated, yet the reading suggests the market is neither overbought nor oversold at this point.

Despite a decisive move lower, activity volumes have not spiked to panicked levels. Participation was pronounced in August’s breakout phase, but as September progressed, volume diminished. The recent sell-off occurred under moderate trading activity, indicating that, for the moment, sellers are not dominating the market, but the rally is also failing to draw new buyers.

Support and resistance zones

On a broader timeframe, the chart remains structurally constructive. Longer-term moving averages continue to ascend and remain in a bullish formation. Immediate support now stands in the $81 to $82 range, where blue and cyan moving averages overlap. Should HYPE fall further, stronger support is located at the orange average around $73 and then at the long-term black line near $61.

For buyers to regain momentum, HYPE needs to close back above the $88 to $90 resistance area. If this effort falls short, monitoring the $75 to $78 zone, which was the September low, becomes crucial as the next potential test for support.

Outlook for Hyperliquid’s token

Hyperliquid is a decentralized derivatives exchange offering a platform for on-chain perpetual futures trading. Its HYPE token is central to trading and governance on the network. The overall trend remains technically positive given the alignment of long-term averages, but the current loss of short-term support suggests a phase of caution as the price action consolidates after a rapid ascent.

Until HYPE can reclaim the recently broken level, the prevailing direction appears tilted toward further downside corrections, with traders focused on the rising moving averages as possible entry points if selling intensifies.

Mini dictionary: Hyperliquid, a decentralized derivatives exchange, enables users to trade perpetual futures contracts directly on-chain without intermediaries, emphasizing transparency and self-custody of funds.