Hyperliquid (HYPE) Drops Below $30 as Whale Longs and Weak Demand Raise Liquidation Risk
Hyperliquid (HYPE) has slid below $30 after recent rejections at resistance levels, extending weekly declines and exposing concentrated leveraged long positions to liquidation risk. Price fell from the $32–$50 resistance area in earlier reports to lows in the high-$20s (reports note $22–$29 lows across updates). Short-term technical indicators are bearish: price is beneath short EMAs/DEMA and moving averages (MA9/MA21), RSI is oversold, and TradingView’s Demand Index has shifted into negative territory, signaling selling pressure exceeds buying. Derivatives and on-chain data show sizable whale long exposure—large 10x and 5x longs reported earlier with liquidation points near $13.7–$20.7, and later reports identify another 10x whale adding ~23.8k HYPE (~$712k). Coinglass/CoinGlass data indicate millions moved into long positions recently, with historic liquidations of longs far exceeding shorts in prior sessions. Key levels to watch: immediate demand/support around $20–$28 (varies by report), resistance/short-term targets near DEMA/MA levels around $30–$34. Trading implications: concentrated long leverage creates heightened short-term downside risk if support breaks and triggers cascade liquidations; a bullish reversal requires reclaiming MA9/MA21/DEMA and renewed buy-side liquidity. Traders should monitor whale wallet activity, funding and leverage flows, on-chain liquidations, and whether $28 (or lower $20 area) holds or $30/DEMA is reclaimed for trend confirmation.
Bearish
Both articles highlight a persistent short-term bearish setup for HYPE driven by price trading below key short-term moving averages (MA9/MA21, EMA/DEMA), negative demand metrics, and concentrated leveraged long positions held by whales. On-chain and derivatives data show significant long exposure and recent large long liquidations, increasing the chance of cascading forced selling if support levels (~$20–$28) fail. Although RSI readings suggest oversold conditions that can precede bounces, the dominant factors—high leverage concentration, continuing inflows into long positions, and weak buy-side liquidity—favor further downside until the market reclaims short-term moving averages and demand metrics improve. Short-term impact: elevated volatility and downside risk from potential liquidation cascades. Longer-term impact: neutral to negative unless deleveraging completes and accumulation occurs at lower levels; structural recovery would require sustained buying that pushes price back above MA9/MA21/DEMA.