Key Takeaways
- A whale who made $50 million on Hyperliquid (HYPE) has opened $16 million in short positions.
- Price action suggests $50–$45 could be possible if the price falls below the $52.25 level.
- Traders have opened $10.23 million in short positions at $54.62 level.
Hyperliquid (HYPE) continues its downward trend with four consecutive red days, intensifying selling pressure. This outlook has been further strengthened by whale activity and experts’ bold claims on X, suggesting a potential dip is on the horizon.
Hyperliquid (HYPE) Faces Increasing Sell Pressure
Recently, the crypto transaction tracker Lookonchain shared that a crypto whale, who previously made over $50 million on HYPE, has just opened a 3X leveraged short on 303,901 HYPE, worth $16 million.
This strong bet by smart traders has attracted significant attention from investors and traders, suggesting that HYPE may be on the verge of a price decline.
Expert Analysis Supports Bearish Outlook
Additionally, a crypto expert further supported HYPE’s bearish outlook. In a post on X, the expert shared that HYPE is moving smoothly within a massive bullish channel but now appears to be topping out.
The expert also included HYPE’s daily chart, marking the lower boundary of the ascending channel pattern. According to the post, when HYPE’s price reaches the $48–$50 range, it would form a bullish Fair Value Gap (FVG) and could serve as a solid entry point for a long position.
The post on X hints that the current sentiment remains bearish, and the price may drop toward the FVG area.
Hyperliquid (HYPE) Price and Rising Volume
Currently, HYPE is trading near $52.85, down 2.85% over the past 24 hours. However, investors and traders have shown interest in the price dip, as HYPE’s trading volume during the same period has jumped 12% compared to the previous day.
This surge in trading volume during the price decline indicates that market participants are eager to push the price lower, signaling a bearish outlook for HYPE holders.
Technical Levels and Potential Moves
TimesCrypto’s technical analysis reveals that the long-term sentiment for the HYPE token is bullish, as it has recently broken out of an ascending triangle pattern. However, the short-term outlook is bearish, as it seems to be retesting its breakout level at $50.
HYPE is currently at a local support level of $52.25. If the asset holds this level, there is a strong possibility that its price could surge by 50%. Meanwhile, a quick rally in the asset is likely only if HYPE clears the $57.50 level.
On the other hand, if it fails, the price may drop to $50 or even $45 in the coming days.
Traders Place Strong Bearish Bets
At press time, the on-chain analytics tool Coinglass reveals that HYPE’s major liquidations are at $51.86 on the lower side and $54.62 on the upper side, where traders are over-leveraged with $5.13 million in long positions and $10.23 million in short positions.
This makes it clear that the current market sentiment is bearish, with sellers dominating the asset and a strong belief that HYPE’s price won’t cross the $54.62 level anytime soon.
