Hyperliquid’s price is currently hovering around $40. A surge in trading volume, up by 52%, has been observed recently. This increase comes as the crypto market experiences a decline of 3.44%. The bearish sentiment is evident, with Bitcoin and Ethereum both experiencing downtrends, currently trading at around $107,400 and $3,700. The altcoin market saw a drop in Hyperliquid (HYPE) with a loss of over 3.04% in the past 24 hours. After opening at $42.96, HYPE’s price dropped to around $40.29 before trading at $40.49 as of press time, with its market cap staying at $13.61 billion. Daily trading volume has also increased by over 52%, reaching $516.21 million. A significant 24-hour liquidation of $4.82 million has also been recorded. The Ali chart suggests a potential Head and Shoulders formation on Hyperliquid, indicating a bearish reversal pattern. A drop below the neckline support at $38 could confirm this, potentially leading to a downward movement towards the $20 level. Will HYPE’s momentum reverse or continue downwards? The current downside pressure on Hyperliquid may result in a fall to the support of $39.82. This might trigger a bearish correction and a death cross, pushing the price back to its previous low at around $38.46. If the momentum takes a turn, the asset could experience an immediate surge in price, potentially reaching resistance at $41.53. Assuming the upside correction gains traction, the golden cross might form, leading to a further increase in Hyperliquid’s price to $42.27. The Moving Average Convergence Divergence (MACD) and signal lines on HYPE are below the zero line, indicating a bearish market condition. A bullish signal is unlikely unless both move above the zero line. Additionally, while the Chaikin Money Flow (CMF) suggests slight positive buying pressure at 0.05, this value doesn’t strongly demonstrate a strong bullish momentum. The current situation reflects mild accumulation rather than robust bullishness. Lastly, the RSI of HYPE at 35.60 indicates it might be approaching oversold territory, below 30. A potential reversal could be on the horizon if it continues to drop or begins moving upward. Hyperliquid’s Bull Bear Power (BBP) reading of -2.72 points towards an overwhelming bearish trend with sellers dominating the market. This further reinforces a bearish outlook.