Hyperliquid (HYPE) Price Breakdown Deepens as Traders Brace for a Drop Toward $24

TLDR:

• HYPE’s fall below the $29 floor signals weakening demand and shifts focus toward the next key support near $24.
  

• Chart retest of the broken support suggests continued selling pressure unless the token reclaims the $29 zone soon.
  

• Market tension grows as volume softens, Bitcoin stalls, and traders reassess short-term expectations for HYPE price.
  
• Strong revenue, major buybacks, and steady exchange activity keep bulls watching the $23–$26 region for stability.

Hyperliquid HYPE price breakdown has sparked strong market attention after the token slipped below a key support area. 

The move came as traders reacted to weakening structure and fading demand near the $29 zone, which served as an important floor in recent weeks.

The sharp candle close under this level signaled a change in short-term market behavior, pushing the token into a lower range. Market participants are now watching how traders respond to the shift, especially as broader conditions remain cautious.

Support Failure and Market Structure Shift

The chart indicates that Hyperliquid HYPE price breakdown occurred after the token dropped under the established support around $29. 

This zone had held firm on multiple occasions, but selling pressure increased and forced the price to close at $28.891. The move showed that buyers were no longer defending the level with the strength seen earlier.

A long downside wick formed during the slide, showing aggressive selling during the session. 

Analyst Ali shared a detailed view, explaining that the broken level may open a path toward $24, which appears on the chart as the next key area. The dotted projection line suggests a structured glide toward that zone.

A brief retest of the broken support also appeared. This retest now aligns with typical resistance behavior after a breakdown. 

Market watchers are monitoring whether the price can reclaim $29 because failure to recover the zone may keep momentum aimed toward lower pricing.

Market Reactions and Divided Trader Sentiment

The broader discussion around the Hyperliquid HYPE price breakdown shows a divide among market participants. 

The token slipped more than 5% in 24 hours as Bitcoin paused, creating caution across risk assets. Traders who expected the support to hold are now reconsidering positions as volume softens.

Some market participants point to a possible move toward the $20 range, citing upcoming unlocks and reduced spot activity. 

The breakdown has also caused some traders to anticipate increased selling, especially from those who relied on the $29 level as a protective area.

However, others point to the project’s strong fundamentals. Hyperliquid’s decentralized exchange continues to record steady activity, with more than $3 trillion in historical volume and open interest near $6 billion. 

Its buyback program has already removed 25 million tokens from circulation this year, with purchases averaging near $23.50. Bulls consider the $23–$26 region as a potential accumulation area if broader conditions stabilize.

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