Hyperliquid (HYPE) Price Drops Below $40 as Market Strength Fails to Support Recovery

Hyperliquid (HYPE) surprised traders after slipping below the critical $40 support level despite the broader cryptocurrency market remaining relatively stable. While Bitcoin continues to trade above major moving averages and meme coins attract speculative inflows, HYPE has shown unexpected weakness that raises concerns among investors.

The token recently failed to maintain momentum near the $44-$45 resistance zone, triggering a sharp correction toward the $39 range. Technical analysts note that the breakdown became more serious after HYPE lost the ascending support trend that had supported its recovery rally since March. The decline appears unusual because many altcoins with strong institutional narratives and ETF-related speculation have continued to outperform the market.

From a technical standpoint, Hyperliquid now faces growing bearish pressure. The asset dropped below its 50-day EMA and is moving closer to the 100 EMA support area near $37. In addition, the Relative Strength Index (RSI) has weakened toward neutral territory, signaling fading bullish momentum. The loss of the psychologically important $40 level also accelerated selling activity, as traders viewed it as a key support zone for maintaining the broader bullish structure.

Even with the recent pullback, HYPE has not completely invalidated its long-term uptrend. The asset still trades above the 200 EMA, and the higher-low structure formed since February remains intact. Some analysts believe the breakdown could become a temporary liquidity sweep rather than a full trend reversal.

However, if buyers fail to reclaim the $40 mark quickly, market attention may shift toward the next major support region between $37 and $36. A successful defense of that area could stabilize the price, while further weakness may increase the risk of a deeper correction in the Hyperliquid market.