Hyperliquid (HYPE) Price Analysis: Whale Faces Loss as Market Sentiment Turns Bearish

Hyperliquid’s HYPE token has been under pressure, recently dropping to a key support level around $15.00. A prominent whale who invested over $7.01 million now faces a $1.39 million loss, raising concerns about the token’s price trajectory. 

With technical indicators signaling uncertainty, will HYPE stage a recovery or continue its downward trend?

Read More: How to Buy Hyperliquid (HYPE)

Key Takeaways:

1. A whale who purchased HYPE at an average of $19.34 now faces significant unrealized losses.
2. HYPE is testing critical support at $15.00, with potential downside toward $14.50 if it fails to hold.
3. Technical indicators suggest oversold conditions, hinting at a possible short-term rebound.

HYPE’s Current Price Action

Source: TradingView / AMB Crypto

At press time, HYPE was trading at $15.13, marking a 4.12% decline in the last 24 hours. The token has been consolidating within a falling wedge pattern, a formation that often signals a potential reversal.

If the $15.00 support holds, HYPE could see a rebound toward the $16.50 resistance level. However, a breakdown below this level may lead to a deeper decline, with $14.50 emerging as the next key support area.

Read More: Hyperliquid (HYPE) Price Prediction 2024-2030

Technical Indicators: Bearish But Nearing Oversold Conditions

RSI and MACD Signals

The Relative Strength Index (RSI) currently stands at 39.67, nearing oversold territory. Historically, assets trading near RSI 30 often experience buying pressure, leading to short-term reversals.

Meanwhile, the MACD indicator remains bearish, with the blue line positioned above the orange line, signaling continued selling pressure. While this suggests a weak trend, a bullish crossover could indicate momentum shifting.

Read More: What is Hyperliquid?

Liquidation Heatmap & Market Sentiment

Data from Coinglass reveals multiple liquidation clusters forming around the $15.00 level. If the price dips below this threshold, leveraged positions could face liquidations, triggering a further price decline.

Moreover, Santiment’s Weighted Sentiment Indicator stands at -0.91, highlighting growing market pessimism. The bearish sentiment aligns with HYPE’s recent downtrend and cautious trading behavior.

Read More: What is HyperEVM and Its Role in Hyperliquid

Will HYPE Rebound or Decline Further?

HYPE’s price movement remains at a critical turning point. While indicators show potential for a short-term rebound, failure to maintain $15.00 as support could push the token toward $14.50 or lower.

The market will likely remain cautious until a clear breakout above resistance or a decisive breakdown confirms the next price direction.

FAQs

1. Why is HYPE’s price dropping?
HYPE has faced selling pressure, with market sentiment turning bearish due to recent price declines and leveraged positions at risk of liquidation.

2. What happens if HYPE falls below $15.00?
A breakdown below $15.00 could trigger further liquidations, pushing the price toward the next support at $14.50 or lower.

3. Is this a good time to buy HYPE?
While technical indicators suggest oversold conditions, further downside risks exist. Traders should monitor support levels and market sentiment before making any decisions.