Whales and Retail Investors Exiting Hyperliquid: Will HYPE Maintain Support Below $20?
Lose That Bearish Vibe: HYPE's Rollercoaster Ride
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Hyperliquid (HYPE) is grappling with a surge in bearish sentiment, but there's hope on the horizon. Here's the lowdown on the cryptocurrency's ups and downs, and what's in store for its future price action.
Whales Causing Waves
In a recent unexpected move, a whale dumped an eye-popping 6.51M USDC into Hyperliquid, opening a massive short position with 5x leverage. This action has stirred up some stormy seas for HYPE, but could it lead to calmer waters?
Substantial bearish pressure could be brewing as a result of the whale's aggressive short position. If the market continues to liquidate long positions, HYPE may face additional corrections in the coming days.
Riding the Bear Intensity
Dissecting the liquidation data from CoinGlass gives us some insights. Roughly $14,000 in long positions were wiped out compared to a mere $93 in shorts. This discrepancy suggests a growing unease among traders and highlights the increased selling pressure on HYPE, raising red flags about HYPE's near-term price outlook.
At the moment, HYPE is trading at $20.54, marking a 1.71% increase in the past 24 hours.
Gauging the Market's Pulses
The OI-Weighted Funding Rate currently sits at 0.00999%, a reflection of the cautious sentiment among traders. They appear to be hesitant and reluctant to take on risky positions, opting instead for a conservative approach.
Unfortunately, this conservative stance has made HYPE become trapped in a consolidation phase, making it difficult to break through resistance levels and propel the price upward.
Dodging the Resistance Zone
Hyperliquid has encountered difficulties surpassing the $22 supply zone, leading to an ongoing downtrend. Currently, HYPE is stabilizing around $20.60 but is struggling to maintain upward momentum.
If the bulls can't break through the resistance, the path seems to lead downward, with a drop towards the $18 support zone becoming increasingly likely.
Retail Market on Pause
Retail participation is losing steam, as Social Dominance dipped to 1.00%, and Social Volume dropped to 33. This trend indicates a decline in retail interest and weakened momentum, making it harder for HYPE to regain upward momentum.
Treading Water Amid Bearish Waters
Overall, HYPE's future outlook remains unpredictable. The combination of bearish pressure, declining retail interest, and cautious sentiment among traders presents a complex picture.
If HYPE manages to rally above the resistance levels and gather more retail support, it could potentially reclaim the momentum needed to surge higher. However, if bearish forces prevail, the price may continue to decline, landing HYPE in the support zone around $18.
Sources: CoinGlass, TradingView, Santiment.
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- Despite the current bearish sentiment surrounding Hyperliquid (HYPE), the ongoing market dynamics portend a potential rally if the bulls can break through the resistance levels and garner more retail support, shifting the focus from finance losing to finance gaining in the crypto market.
- Investors should closely monitor the market sentiment towards HYPE, particularly the conservative stance among traders, as it could impact the future price action of this cryptocurrency in the finance industry, with the $18 support zone looming as a possible destination if bearish forces prevail.
