Hyperliquid (HYPE) price has dropped nearly 16% in the last 24 hours, bringing its market cap down to $7.4 billion. Technical indicators suggest that sellers are gaining control, with Directional Movement Index (DMI) and BBTrend both weakening.

The EMA lines are also showing signs of a potential death cross, which could accelerate losses if key support at $21.1 fails. However, if buyers step in and momentum shifts, HYPE could rebound toward $24.39, with a breakout potentially pushing it to $27.

HYPE DMI Chart Shows Sellers Are In Control

Hyperliquid Directional Movement Index (DMI) chart shows a significant shift in momentum, with its Average Directional Index (ADX) rising to 20.3 from 9 in just four days.

The ADX measures trend strength on a scale from 0 to 100, where values below 20 indicate a weak trend, and readings above 25 suggest a stronger trend is forming. This recent increase suggests that HYPE’s ongoing downtrend may be gaining strength, but it’s still in the early stages of confirmation.

The +DI (Positive Directional Indicator) has dropped sharply from 30.9 to 14.1, while the -DI (Negative Directional Indicator) has surged from 13.5 to 25.2, signaling a shift in momentum toward the downside.

Since -DI is now above +DI, sellers are currently in control, reinforcing HYPE bearish trend. If ADX continues rising above 25, it would confirm a stronger downtrend, meaning further losses could be ahead unless buyers regain momentum.

BBTrend Is Still Positive, But Going Down

HYPE BBTrend has dropped significantly from 10.1 yesterday to 3.15 today, signaling a weakening bullish momentum. BBTrend (Bollinger Band Trend) measures the strength of a price trend based on Bollinger Bands, where positive values suggest an uptrend and negative values indicate a downtrend.

The higher the BBTrend value, the stronger the trend in that direction. While HYPE’s BBTrend remains positive, its sharp decline suggests that buying pressure is fading.

With BBTrend falling quickly, HYPE’s price momentum is slowing, increasing the risk of a potential reversal or deeper pullback. If the BBTrend turns negative, it could confirm a shift into a downtrend.

However, if buyers step in and stabilize the trend, HYPE price could attempt to regain bullish strength. The next few sessions will be crucial in determining whether this decline is a temporary dip or the start of a broader correction.

HYPE Price Prediction: Will HYPE Fall Below $20 Soon?

Hyperliquid Exponential Moving Average (EMA) lines indicate a crucial turning point, as short-term EMAs are still above long-term ones but are declining quickly.

If they cross below—a death cross—it would signal a stronger bearish trend. In that case, HYPE could test key support at $21.1. If that level breaks, further downside could push prices to $20.1 or even $18.89, the lowest level since January 13. This scenario would confirm increasing selling pressure and a prolonged downtrend.

However, if HYPE price holds above support and momentum shifts, it could attempt a trend reversal.

A rebound from current levels might lead to a test of the $24.39 resistance, and breaking that could push the price toward $27.

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Crypto AI Agents were one of the most talked-about narratives in the crypto space, with projects like VIRTUAL and AI16Z reaching record valuations. However, the sector has struggled since mid-January, as sentiment shifted and DeepSeek’s influence further accelerated the ongoing correction.

As a result, market caps have plummeted, and investors are now reassessing the sustainability of AI-driven blockchain projects. While a rebound is still possible, the entire crypto AI sector needs renewed confidence to regain momentum.

Crypto AI Agents Coins Market Cap Is Now At $8 Billion

Crypto AI Agents were one of the hottest narratives in recent months, with tokens like VIRTUAL and AI16Z reaching record highs. The growing hype around AI-driven blockchain projects pushed their market caps to new levels, attracting strong investor interest.

However, the sector has faced heavy losses since January 15, especially after DeepSeek started affecting the broader artificial intelligence market, which impacted a correction that was already taking place even more. This shift in sentiment triggered a sell-off, wiping out a significant portion of recent gains.

In the last 24 hours, the Crypto AI Agents sector has been down 15%, with its market cap now at $8 billion. All 10 top tokens in the sector have declined, with AI16Z dropping 17.9% in the past day and 46.7% over the past month. The sell-off shows no signs of slowing down yet.

VIRTUAL Is Reaching Its Lowest Levels In Months

VIRTUAL is a prime example of the broader correction in crypto AI agent tokens. At its peak, on January 2, it briefly became the largest AI coin, surpassing TAO and RENDER, with a market cap of over $5 billion.

Launched on Base, VIRTUAL provides an easy way for users to deploy AI agents on-chain. As a result, the project gained massive hype, driving its price up by 4,236% between October 2024 and January 2025.

However, in recent weeks, VIRTUAL has faced a sharp decline, with its price dropping over 61% in the last 30 days, bringing its market cap down to around $1 billion, the lowest since November 2024.

Will Crypto AI Agents Recover Their Good Momentum?

AI recently dominated crypto mindshare, reaching over 70% a few weeks ago. However, its influence has sharply declined to just 32%, with Memes, DeFi, and ETFs now closing in as the second, third, and fourth most discussed sectors.

For AI agent tokens to regain momentum, the entire crypto AI sector needs a strong rebound. Meanwhile, many investors are questioning valuations and reassessing their positions, especially after DeepSeek’s impact on the market.

Without renewed confidence in AI-driven projects, recovery remains uncertain. A broader shift in sentiment and fresh catalysts will be necessary for AI coins to start rising again.