- Hyperliquid (HYPE) is under pressure after hitting an all-time high of $45.72, with the token now hovering near the critical $40.00 support amid declining Open Interest and rising liquidations.
- Technical indicators, including a MACD sell signal and weakening RSI, point to a growing bearish trend that could push HYPE toward lower support levels.
Hyperliquid (HYPE), the native token of the high-speed Layer-1 blockchain, is facing mounting pressure after a meteoric rise to an all-time high of $45.72 on Monday. As of Tuesday afternoon, HYPE has shed more than 3.5% of its value, trading at $40.13—perilously close to breaking below a key psychological and technical support level at $40.00.
The correction follows a broader pullback in the crypto market, with traders appearing to lock in profits amid a cooling rally and growing geopolitical uncertainty in the Middle East, particularly the ongoing conflict between Israel and Iran. Bitcoin’s brief jump above $107,000 provided a temporary tailwind for altcoins like HYPE, but that momentum appears to be waning.
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According to market intelligence firm QCP Capital, the crypto market has shown “remarkable composure” despite rising geopolitical risks. Still, the underlying data suggests cracks are beginning to form, especially for HYPE. CoinGlass reports that Open Interest (OI) in HYPE derivatives has fallen nearly 8% in the last 24 hours, dropping to $1.91 billion. Meanwhile, trading volume surged over 54% to $2.89 billion, indicating a spike in liquidations.
In total, $1.77 million in HYPE positions were liquidated during the same period, with long positions accounting for $1.23 million—more than double the $542,000 in shorts. This imbalance reflects growing bearish sentiment and a potential loss of trader conviction in the recent price discovery phase.
From a technical standpoint, the outlook is increasingly negative. The Moving Average Convergence Divergence (MACD) has issued a sell signal, with the MACD line threatening to cross below the signal line—a classic indicator of downward momentum. In tandem, the Relative Strength Index (RSI) has slipped out of overbought territory and is heading toward the neutral 50 mark, reinforcing bearish pressure.
If HYPE fails to hold the $40.00 support level, the next potential downside targets include $36.00, the 50-day Exponential Moving Average (EMA) at $32.01, and the 100-day EMA at $27.41.
While a rebound is still possible, the short-term technical and derivatives market signals suggest traders should brace for further downside—unless bulls can reclaim control above $40.