Hyperliquid's HYPE Faces 1.71% Gain Amid Bearish Pressure

Hyperliquid, the cryptocurrency, is currently experiencing significant bearish pressure. A whale recently deposited 6.51 million USDC into Hyperliquid and opened a short position with 5x leverage, injecting notable bearish pressure into the market. This action suggests expectations of a downside move, which could amplify downward momentum if the market continues to liquidate long positions. The price of HYPE may face additional corrections in the coming days as a result.

At the time of writing, HYPE was trading at $20.54, up 1.71% in the past 24 hours. However, liquidation data from CoinGlass showed a sharp imbalance, with roughly $14,000 in long positions wiped out compared to just $93 in shorts. This indicates that traders are being forced out of their long positions, suggesting a growing bearish sentiment. The imbalance between long and short liquidations highlights the increasing selling pressure on HYPE, further cementing the negative outlook for HYPE’s price in the near term.

The OI-Weighted Funding Rate for HYPE stood at 0.00999% at press time, reflecting cautious market sentiment. Traders remained hesitant, unwilling to take aggressive positions. Despite the Funding Rate remaining slightly positive, it did not possess the strength needed to drive the price higher. Consequently, the market is stagnant and trapped in a consolidation phase. Given the cautious attitude among traders, HYPE may struggle to break out of its current range. Until a clearer bullish signal appears, the market will likely continue in its neutral phase, limiting upward momentum.

Hyperliquid has struggled to break through the $22 supply zone, resulting in a downtrend. Currently, the price is consolidating around $20.60, unable to maintain upward momentum. The failure to break through key resistance indicates that selling pressure is increasing. Unless bulls reclaim $22, the path of least resistance appears downward. A drop toward the $18 support zone becomes probable if selling persists.

Retail participation in HYPE is cooling. Social Dominance for HYPE has dropped to 1.00%, and Social Volume stood at 33. This decline indicates reduced retail interest, suggesting that fewer traders are participating in the market. As social engagement drops, the momentum required to fuel a price increase weakens. Therefore, the altcoin may find it difficult to regain upward momentum without fresh interest. With retail sentiment cooling, the market may struggle to break key resistance levels, and the price could remain under pressure. Lower Social Dominance adds to the bearish outlook for HYPE.

In summary, HYPE is facing growing bearish sentiment after hitting the $22 supply zone. The liquidation data shows more long liquidations compared to shorts, contributing to negative market pressure. The low OI-Weighted Funding Rate and a drop in Social Sentiment reflect the cautious sentiment among traders. Given these factors, HYPE’s outlook remains uncertain. Unless there is a breakout above resistance or a resurgence in retail interest, the price may continue to decline toward support levels around $18.