Hyperliquid (HYPE) has experienced a notable 16% drop within the past 24 hours, causing its market cap to decrease to $7.4 billion. Technical indicators reveal that sellers are beginning to assert control, with both the Directional Movement Index (DMI) and BBTrend showing signs of weakening.

Notably, the EMA lines are hinting at a potential death cross, which could exacerbate losses if the crucial support at $21.1 falters. Conversely, a shift in momentum and an influx of buyers could propel HYPE's price up to $24.39, with a potential breakout targeting $27.

The DMI chart for HYPE highlights the current dominance of sellers. The Average Directional Index (ADX) has spiked from 9 to 20.3 in a mere four days, indicating a growing downtrend that is still in the early stages of confirmation.

The -DI has surged above the +DI, signaling a shift in momentum favoring the downside. If the ADX continues to climb above 25, it could solidify a stronger downtrend, potentially leading to further losses unless buyers manage to regain control.

While the BBTrend for HYPE remains positive, its recent decline from 10.1 to 3.15 suggests waning bullish momentum. This downward trend could prompt a reversal or a deeper pullback if the BBTrend transitions into negative territory.

The portrayal of the Exponential Moving Average (EMA) lines underscores a critical juncture for HYPE. Despite the short-term EMA values declining rapidly, a potential death cross looms large. A breach below crucial support levels could pave the way for a sustained downtrend towards $20.1 or even $18.89.

Nevertheless, a positive shift in momentum may spark a trend reversal, with a successful rebound potentially testing resistance levels at $24.39 and $27. The upcoming trading sessions will play a pivotal role in determining the trajectory of HYPE's price movement.