Hyperliquid’s price is showing renewed weakness after another failed recovery attempt, with technical signals pointing toward a possible move lower. The asset continues to struggle beneath key resistance levels, and recent market behavior suggests sellers still hold the upper hand as downside targets begin to emerge.
Despite occasional short-term rallies, Hyperliquid has yet to break out of its broader bearish structure. The latest rejection near a major resistance zone has reinforced concerns that the correction phase may not be over, shifting traders’ attention toward lower support areas around $22.
Bearish trend remains intact
Market structure remains the biggest challenge for Hyperliquid bulls. On higher timeframes, the asset has consistently formed lower highs, a classic signal of a continuing downtrend. Each recovery attempt has been met with selling pressure, preventing any meaningful shift in momentum.
The most recent setback occurred near the $35 level — an area packed with technical significance. This region aligned with both the Volume Weighted Average Price (VWAP) and the Value Area High, creating a strong resistance cluster. When price approached this zone, sellers quickly stepped in, triggering another rejection and pushing the asset back into its established trading range.
Rather than signaling strength, the rally confirmed that resistance remains firmly defended.
Loss of key volume support adds pressure
After the rejection, Hyperliquid moved back toward the Point of Control (POC), the price level where the highest trading volume has occurred within the current range. Traders often view this level as a crucial battleground between buyers and sellers.
However, Hyperliquid failed to hold above the POC on a closing basis. Losing acceptance above this level indicated weakening demand and reinforced the bearish outlook. Once volume support faded, price entered a new corrective phase across lower timeframes.
When markets lose important liquidity zones, price typically rotates toward deeper demand areas. In this case, analysts are watching the $22–$21 range, which represents a previous swing low and a potential area where stronger buying interest could appear.
Why the $22 zone matters
As long as Hyperliquid trades below both the POC and the $35 resistance area, downside pressure is expected to continue. A move toward $22 would align with the current market structure and act as a natural target within the ongoing correction.
While such a decline may appear negative in the short term, it could also serve as a critical test for long-term buyers. A strong reaction from this zone may help establish the foundation for a future recovery attempt.
On the other hand, a breakdown below $21 would carry more serious implications. Losing this swing level would create a new macro lower low, confirming continuation of the broader bearish trend that has shaped Hyperliquid’s price action for months.
Weak volume limits bullish hopes
Trading volume currently offers little support for a reversal scenario. Buying participation remains limited, and upward moves continue to lack follow-through. Without stronger bullish volume or a reclaim of major resistance levels, rallies are likely to remain temporary corrections rather than trend reversals.
Interestingly, this cautious price outlook comes even as Hyperliquid has surpassed Coinbase in total notional trading volume — a sign of growing interest in decentralized perpetual futures trading. Still, increased platform activity has not yet translated into price strength.
What traders are watching next
For now, the outlook remains tilted to the downside. As long as Hyperliquid stays below key resistance and fails to reclaim lost volume levels, gradual movement toward the $22–$21 support region appears increasingly likely.
That zone will be critical. It could either spark a meaningful rebound or confirm that the broader bearish trend still has further to run.
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