The Hyperliquid (HYPE) market is showing growing signs of stress as liquidations climb and traders react to renewed selling pressure. After failing to break a key resistance near $38, the token’s price now appears vulnerable to further downside. Despite this, large holders—commonly referred to as whales—are increasing their long positions, suggesting that some investors are betting on a possible rebound.
HYPE Struggles Near Resistance
HYPE recently attempted to break above the $38 resistance, represented by a critical Exponential Moving Average (EMA) on the daily chart. However, the rejection from that zone reinforced the bearish sentiment, keeping sellers in control of short-term price action.
Technical indicators show that HYPE could be forming a head-and-shoulders pattern—one of the most recognizable bearish setups in crypto markets. Historically, such formations have preceded further declines unless the asset manages a decisive breakout above resistance.
If HYPE fails to recover momentum, the next support zones to watch lie near $32 and $28, levels that previously provided a foundation for upward moves. Breaking below these regions could confirm the bearish outlook and open the door for deeper corrections.
Stochastic RSI Signals Potential Short-Term Relief
While the broader structure leans bearish, the Stochastic RSI indicator offers a glimmer of hope for bulls. The oscillator has recently rebounded from oversold territory, a signal that downward pressure might temporarily ease. This could allow HYPE to retest minor resistance levels in the short term before deciding its next major direction.
Still, traders should approach cautiously. The indicator’s rebound alone does not guarantee a sustainable recovery, especially when overall market momentum remains weak.
$292K in Liquidations Shake the Market
According to data from Coinalyze, Hyperliquid has witnessed roughly $292,000 worth of liquidations over the past 24 hours. The majority of these were short positions, reflecting heightened volatility as traders tried to anticipate HYPE’s next move.
Liquidations of this scale indicate an increasingly unstable market environment, where leveraged positions are being wiped out amid sudden price swings. Such conditions tend to amplify volatility, creating both risks and opportunities for short-term traders.
The surge in liquidations also underscores how closely HYPE’s fate is tied to broader market sentiment. With Bitcoin and major altcoins experiencing increased turbulence, smaller assets like HYPE are often hit harder as liquidity thins and traders rush to adjust exposure.
Whale Activity Rises Despite Pressure
Interestingly, data from CryptoQuant shows that large HYPE holders are adding to their positions during this downturn. This accumulation phase suggests that whales may be preparing for a potential rebound or at least attempting to slow the pace of the selloff.
Historically, whale activity can play a crucial role in shaping short-term price direction. When large holders increase exposure during a decline, it can create temporary stability by absorbing selling pressure. However, if liquidations continue to accelerate, even strong whale support might not be enough to prevent another drop.
The key question for investors is whether whale buying represents genuine accumulation for the next bullish leg or a defensive move aimed at minimizing losses.
Balancing Whale Accumulation and Market Momentum
At this stage, HYPE’s price trajectory will depend largely on the balance between whale accumulation and continued liquidation pressure. If long liquidations begin to rise, it could signal that leveraged buyers are being forced out of the market, leading to another wave of selling.
On the other hand, if whale accumulation continues and retail traders regain confidence, a short-term relief rally could emerge. In that case, the $40–$42 range would become the next critical resistance zone to watch.
Traders are closely monitoring funding rates and open interest to gauge sentiment shifts. A decline in funding rates coupled with steady open interest could indicate that bearish momentum is stabilizing—a potential precursor to recovery.
Market Outlook
For now, Hyperliquid remains in a fragile state. The failure to hold above key resistance levels, coupled with high liquidation activity, signals caution for both traders and investors. While whale accumulation provides some hope, sustained recovery will require broader participation and improved market sentiment.
If bearish momentum persists, HYPE could face further declines toward its lower support zones. Conversely, if buying volume increases near current levels, the token might attempt a rebound toward the mid-$40 range in the coming sessions.
Overall, HYPE’s short-term outlook remains uncertain. Traders should keep an eye on liquidation data, whale wallet movements, and broader market trends before making new entries. The coming days may determine whether whales can successfully stabilize Hyperliquid or if continued selling will lead to deeper losses across the market.
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