Hyperliquid (HYPE) falling: Is the $31 mark the next stopping point?

Hyperliquid (HYPE) has been unable to break through the strong resistance level at the $41 zone in mid-July, and since then, the price has returned to oscillate within the familiar Accumulation range it has maintained since the end of May.

With a long-term vision, the HYPE retreating to the bottom zone of this range could open up a highly potential buying opportunity for investors.

HYPE/USDT chart on the 12-hour frame | Source: TradingViewAs of now, HYPE is trading below the average of the price range, around the mark of $37.9. This token is showing signs of testing the $38 zone as a new resistance zone. Notably, the declining trend of the OBV indicator over the past two weeks has further reinforced the argument for a bearish scenario, reflecting the continuous selling pressure weighing on the market.

The rejection of price at the $41 mark, along with HYPE not being able to maintain above the average threshold, indicates that the possibility of a deeper decline is gradually becoming a reality. The break below the balance zone not only confirms the weakening momentum but also opens up the risk of further downturn in the short term.

Trader HYPE needs to prepare for strong fluctuations

The price zone of $111,000–$112,000, where Bitcoin (BTC) has been fluctuating for the past few hours, is currently acting as a significant short-term support level.

From this zone, the possibility of BTC bouncing back is entirely possible — and if that scenario occurs, the price of Hyperliquid also has a chance to recover and surpass the resistance at the average level of the range.

However, traders should prepare for the upcoming volatility, as the overall trend is still leaning towards a downward direction. The negative scenario still has its basis, with the possibility of the price returning to the zone around the $31 mark not being ruled out.

The HYPE/USDT chart on the 4-hour timeframe | Source: TradingViewHowever, the downward journey may not occur in a straight line. The 4-hour chart is currently showing bullish divergence signals on the RSI indicator (marked in orange), suggesting a potential recovery up to the zone of $39–$40.

Short positions ( should be particularly cautious of the risk of being "forced to sell" when the market bounces back strongly.

It is important to note that the market structure on the 4-hour frame is still leaning towards a downtrend. The $38 mark has continuously acted as a resistance zone in the past 24 hours. The bearish scenario will still dominate unless the HYPE bulls can turn the tide, turning $38 into solid support and pushing the price above the $39.2 mark.

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