In recent days, the native token HYPE of the decentralized‑exchange platform Hyperliquid Labs is showing signs of weakening, raising concerns that a large volume of leveraged long positions could be forced into liquidation.
Market Situation
HYPE is currently trading in a narrow range between approximately USD 38.4 and USD 42.4, according to recent price data.
A key support level sits at USD 35.3 — if HYPE drops to this level and breaks through, it could trigger a cascade of forced liquidations, estimated at about USD 24.4 million worth of long orders.
Technical indicators are leaning bearish: notably, a bearish crossover on the MACD is signalling increasing selling pressure.
What This Could Mean
If HYPE fails to hold its support at USD 35.3:
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A surge of leveraged long‑positions may be liquidated, creating downward momentum.
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Investor sentiment may erode further, reducing fresh inflows of capital and lengthening the recovery process.
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Conversely, if the token manages to reclaim resistance near USD 42.2 and turn that into a new support, there’s potential to rally toward USD 47.1 — though this requires broader crypto‑market recovery.
Broader Context & Risk Factors
The current state of HYPE cannot be analysed in isolation:
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The overall crypto market sentiment has been soft, which typically reduces appetite for risk‑assets like altcoins.
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Elevated liquidations around leveraged positions often exacerbate declines, especially when a large chunk of traders are on the same side of the trade (in this case: long).
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Support and resistance levels (USD 38.4 → USD 35.3 → USD 42.2 → USD 47.1) are key charting benchmarks. Breaking the lower support could trigger a sharper drop; reclaiming resistance could create a footing for rebound.
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Risk‑management is crucial: those holding or considering long positions may want to evaluate their exposure, especially given the possibility of swift moves downside.
Key Takeaways
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HYPE’s current range makes it especially vulnerable if sentiment worsens.
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The ~$24 million figure underscores that a non‑trivial volume of long bets is at stake.
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For bullish recovery to take shape, two things need to happen: HYPE must hold or bounce off support and the broader altcoin market must stabilise or improve.
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Until then, downside remains more likely than rapid upside — particularly given the technical signals and market mood.
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