Mass Exodus at Hyperliver: Whales and Retail Investors Quit - Will HYPE Stabilize Below $20?
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Emma Murphy and Billy Drake#### Share this article
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It's a rough ride for Hyperliquid [HYPE] these days, with the token wrestling in the grasp of bearish pressure.
A voracious whale donated a mammoth 6.51M USDC and dived headfirst into a 5x leveraged short position in HYPE, creating a significant wave of bearish expectation. This move could potentially supercharge the descent if the market continues to purge long positions.
At the press time, HYPE traded at $20.54, a slight 1.71% bump up from the previous 24 hours. But the trend ain't lookin' good.
Long liquidations rule the roost
Data from CoinGlass painted a stark picture: around $14,000 in long liquidations got the axe compared to a meager $93 in shorts. The scale lopsidedness suggests a pervasive bearish sentiment brewing among traders. Adding fuel to the fire, the imbalance between long and short liquidations magnified the pressure on HYPE, escalating the downside potential.
Mixed signals from traders
The OI-Weighted Funding Rate for HYPE currently stands at 0.00999%. This lukewarm number shows traders are playing it cool, refusing to take high-stakes bets. Despite the Funding Rate still pointing slightly upward, it's not enough to create a hard push upwards. The market is stuck in a rut, unable to escape its consolidation phase.
Struggling to hit the resistance
Hyperliquid has been repeatedly clobbered against the $22 supply zone, triggering a downward spiral. Now, the price is by and large consolidating around $20.60, unable to maintain its mojo. The inability to breach key resistance hints that selling pressure is mounting. If bulls can't reclaim $22 soon, a tumble toward the $18 support zone hardly seems unimaginable should selling persist.
Retail interest hits a slump
Consumer participation is on the wane. The Social Dominance for HYPE slid to 1.00%, just 33 Social Volume points keeping the conversation going. This dip indicates waning enthusiasm among retail traders, depleting the firepower needed to ignite upward momentum. Without fresh blood, the token might struggle to regain its mojo.
With retail sentiment on the decline, it's probable the market will continue to bump into resistance walls, casting a gloomy outlook on the token's price. A lower Social Dominance adds another grim layer to the bearish HYPE prediction.
In other words, HYPE is currently in the middle of a bear run, propelled by whale actions, long liquidations, and deteriorating retail interest. If market conditions don't reverse soon, the token might continue its descent, ultimately reaching support levels around $18.
- The bears seem to have taken control of the HYPE market, as a substantial whale recently took a 5x leveraged short position in HYPE, causing a wave of bearish sentiment.
- Bitcoin and other cryptocurrencies in the finance world, including HYPE, face a challenging period, with long liquidations overwhelming short ones, suggesting a growing bearish trend among traders.
- Technology plays a crucial role in the investing world, and the recent bearish trend in HYPE underscores the importance of staying informed about market sentiment and trading trends.
