Hyperliquid price weakens, oversold signals can’t stop bears

Hyperliquid price falls below $26 and enters oversold territory, but bearish structure remains intact, increasing the risk of a deeper correction toward lower support levels.

Hyperliquid (HYPE) price is showing increasing technical weakness after losing the critical $26 support level, pushing price into oversold conditions while maintaining a firmly bearish market structure. Although oversold readings can sometimes precede short-term bounces, current price behavior suggests that sellers remain firmly in control.

With structural support now broken and downside liquidity still untested, the risk of a deeper corrective move continues to grow.

Hyperliquid price key technical points

• $26 support has been lost on a closing basis, confirming bearish continuation.
• RSI has entered oversold territory, but momentum remains negative.
• Next major downside support sits near $19, where resting liquidity remains untapped.

The recent loss of the $26 support level represents a significant technical breakdown for Hyperliquid. This zone previously acted as the final area of structural support capable of producing a meaningful upside rotation. Once the price falls below this level, the probability of bullish continuation declines significantly.

From a price-action perspective, the breakdown has reinforced the prevailing bearish trend. Hyperliquid continues to print lower highs and lower lows, a classic indication that sellers remain in full control.

The loss of $26 confirms that prior demand has failed to absorb selling pressure, allowing price to move into a lower-value region, even as Hyper Foundation proposes burning all HYPE held in its Hyperliquid Assistance Fund, highlighting the disconnect between tokenomics developments and near-term price weakness.

The next area of interest lies near $19, which represents the next high-time-frame support zone. Importantly, this region has not been tested in the current move, meaning resting liquidity remains intact. Markets tend to seek out such untapped liquidity, particularly during aggressive downtrends. As a result, the probability of price rotating lower toward this level has increased following the breakdown.

One factor that may attract traders’ attention is the Relative Strength Index (RSI), which is currently in oversold territory. While oversold conditions often raise expectations of a bounce, they do not, on their own, signal a trend reversal. In strong downtrends, oscillators can remain oversold for extended periods while price continues to decline. Without a shift in market structure, oversold readings tend to reflect trend strength rather than exhaustion.

This distinction is critical for Hyperliquid. Despite the oversold RSI, there is currently no structural evidence of a reversal. Price has not reclaimed any key resistance levels, volume remains skewed toward the sell side, and downside momentum continues to dominate. Until these conditions change, any short-term relief rallies are more likely to be corrective rather than impulsive.

From a market-structure standpoint, the breakdown below $26 has removed the last meaningful support before price enters a low-liquidity zone. This increases the likelihood of an accelerated move lower, particularly if selling pressure intensifies or broader market conditions weaken.

Such moves often take the form of capitulation-style price action, where price rapidly moves into lower support regions to clear remaining liquidity, even as Hyperliquid Strategies announces a $30M buyback aimed at supporting its HYPE-linked stock, underscoring the gap between corporate actions and near-term price dynamics.

What to expect in the coming price action

As long as Hyperliquid remains below $26, bearish continuation remains the higher-probability scenario. Oversold conditions alone are not sufficient to signal a reversal. A move toward the $19 support zone appears increasingly likely unless price can reclaim lost structure with substantial volume and momentum.