- Hyperliquid faces renewed selling after rejection at key resistance near $38.02.
- A head-and-shoulders pattern hints at deeper losses if momentum weakens.
- Whales are buying amid rising liquidations, creating uncertainty in price direction.
Hyperliquid’s rally appears to be losing steam. The token recently tested an important Exponential Moving Average near $38.02 but failed to break higher. That rejection sparked a wave of selling pressure, signaling that bears still dominate the short-term trend. Will bulls step in to drive growth or bears will push prices lower?
HYPE Battles Resistance as Bears Regain Control
On the daily chart, HYPE seems close to completing a head-and-shoulders pattern . This formation often precedes steep declines and suggests a shift toward a bearish market structure. If the price fails to reclaim the $50 resistance zone soon, the outlook could darken further. Traders watching momentum indicators have noticed mixed signals.
The Stochastic RSI recently bounced from an oversold region, hinting that the downward pressure might pause temporarily. However, many remain cautious, waiting to see if this rebound leads to sustained buying or another failed recovery. Market sentiment remains divided. Some investors view the recent dip as a correction before another push higher, while others see it as the start of a broader downtrend. The coming days may reveal which side holds stronger conviction.
Whales Step In as Liquidations Rise
Coinalyze data shows a notable surge in short liquidations, with over $292,000 worth of HYPE positions wiped out within 24 hours. The spike reflects sharp price swings and growing market uncertainty. Despite the volatility, large holders appear to be accumulating. Whale wallets have been adding to their positions, possibly to protect their exposure or anticipate a rebound once selling slows. This behavior suggests that some institutional players still believe in a potential recovery.
However, the balance between these two forces—rising liquidations and whale accumulation—will likely determine HYPE’s next move. If long liquidations begin to rise, the correction could accelerate. But if whale buying continues, it might cushion the fall and even trigger a short-term bounce. For now, traders remain on edge. The technical setup leans bearish, yet on-chain data shows quiet confidence among a few major holders. This tug-of-war creates both risk and opportunity for those watching from the sidelines.
Hyperliquid’s next test lies near the $50 resistance. A clean break above that zone could invalidate the bearish structure and renew optimism. Failure to do so may confirm the head-and-shoulders formation and send prices even lower. Either way, volatility seems far from over. With whales active and traders divided, Hyperliquid’s future depends on whether buying strength can overpower the growing wave of liquidations.
