Bitcoin's rising dominance has increased pressure on altcoins, including Hyperliquid, which fell by 9% today, reaching a critical support level.
Altcoin Market Under Pressure
BTC dominance rising by 0.84% over the past 24 hours has heightened pressure on altcoins, leading to a bearish trend across the market. Hyperliquid, a decentralized exchange on its own Layer-1 blockchain, has also been affected.
Hyperliquid's Symmetrical Triangle Support Test
After an impressive bull run in 2024, with Hyperliquid (HYPE) token rising over 200%, the price entered a correction phase, forming a Symmetrical Triangle. The recent rejection from the upper resistance and breakdown below the 25-day moving average have brought HYPE to a critical test of the lower trendline support around $21.40. If this level holds, a potential bounce may occur. Conversely, a further decline to the $18.54 support level might suggest a descending channel pattern formation.
Final Thoughts
The MACD indicator is showing signs of bearish momentum, and HYPE might continue to face downside risk in the short term unless buyers defend the support zone.
The future of HYPE largely depends on its reaction to the current critical support level and the dynamics of Bitcoin's dominance in the market.
