Hyperliquid’s native token HYPE is showing signs of weakness following recent market volatility. After several failed recovery attempts, the altcoin is struggling to maintain its footing above key support levels.
While short-term traders are anticipating a potential pullback, technical indicators suggest that long-term traders should proceed with caution.
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Ultra-liquid traders can face losses
The liquidation map reveals that long HYPE traders could face liquidations of up to $24.4 million if the token falls to the key one-month support of $35.3. This is a major risk as it can cause widespread position closures among leveraged traders.
What makes this development more concerning is that this level has already been tested twice in the last month. A third test could undermine market confidence and discourage new long positions, leaving HYPE vulnerable to increased volatility and downward price pressure.
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The Moving Average Convergence Divergence (MACD) indicator is flashing early warning signs of strengthening bearish momentum.
A bearish crossover recently occurred, suggesting that selling pressure may continue. Although the current economic downturn is not yet severe, a decline in market confidence could accelerate losses.
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If the broader sentiment in the crypto market worsens, HYPE may find it difficult to maintain its current trading range. A deepening bearish trend could prolong recovery efforts and cause traders to exit before the situation improves. On the other hand, stability in the Bitcoin and altcoin markets may ease selling pressure on HYPE.
HYPE price may fall to support price
HYPE is trading at $39.9 at the time of writing and remains within a narrow range between $42.4 and $38.4. Unless market sentiment improves significantly and buyers return, the potential for an upside breakout seems limited.
If the bearish situation persists, HYPE could lose the support at $38.4 and retest the $35.3 level. A fall below this threshold could trigger multi-million dollar long-term liquidations, widening the decline and delaying any recovery attempts.
On the other hand, if positive momentum builds and investor support strengthens, HYPE could attempt to break out of the $42.2 resistance level.
A successful conversion of this barrier into support could push the altcoin towards $47.1, invalidating the bearish outlook and restoring optimism among traders.
