Regulatory Fear Paralyzes Derivatives, Price Primed to Break Support

• • The daily and 1-hour charts display the price increasingly pressured to the edge of the $40 support cliff without any significant buying volume.
• • Market sentiment on April 22-23, 2026, is weighed down by regulatory uncertainty in the US, causing derivative trading activity to significantly stall, eliminating core driving liquidity.

The resilience of this decentralized exchange (DEX) narrative is being crushed by bureaucratic walls. Market reports on April 22-23, 2026, highlight massive doubts regarding the legal future of Hyperliquid in the United States. This prolonged regulatory uncertainty has directly impacted its fundamental metrics, with futures market activity and volume reportedly stalling out. Technically on the daily (1D) and 1-hour (1H) charts, this loss of speculative liquidity forces the price to remain pressured at the $40.74 entry equilibrium, testing the $40 psychological wall. Given the absence of buyers from the derivatives market, this spot defense is projected to collapse soon. Supply thrust is predicted to break the $40 floor, forcing the price to slide through the nearest target at $38 down to seek a macro liquidity base at the $36 level over the next 5 days.

If the Hyperliquid entity suddenly releases a positive regulatory clarification or legal workaround, this asset could trap sellers (bear trap). A reversal breakout above the $42.5 watch level will invalidate this bearish scenario and trigger a massive short squeeze.