Hyperliquid's native token teeters dangerously close to its critical support. With $24 million in long positions facing imminent liquidation, leveraged traders find themselves in a precarious situation. Technical indicators show concerning bearish signals as the $35.3 level rapidly approaches.
The liquidation map of Hyperliquid paints a concerning picture for long position holders. If HYPE breaks below the $35.3 threshold, no less than $24.40 million worth of positions could be automatically liquidated. This monthly support level has already undergone two consecutive tests last month, significantly weakening its stability.
A third test would represent a major warning signal for the market. Trader psychology plays a crucial role in these moments: each failed attempt erodes confidence and discourages new entrants. Leveraged positions, particularly popular on Hyperliquid, mechanically amplify price movements during cascade liquidations.
This phenomenon of successive liquidations could create a genuine domino effect. When the first positions are triggered, selling pressure intensifies dramatically, triggering other liquidations and precipitating a price collapse. Experienced traders are well familiar with this classic scenario in leveraged markets.
Hyperliquid could therefore plummet toward $17 with massive November unlocks and a bear market weighing down. In this context, the Grid Bot from Pionex is delivering explosive returns on extreme volatility, with 50-150% annualized without leverage or liquidation risk!
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The MACD indicator leaves little room for optimism. A recent bearish crossover suggests a likely intensification of selling momentum. Although the current decline remains moderate, the technical configuration points toward an acceleration of losses if market sentiment continues to deteriorate.
The token is currently trading around $40, stuck in a narrow consolidation range between $38.4 and $42.4. This restricted trading zone often precedes a violent movement in one direction or the other. Trading volumes show buyers losing momentum, unable to push the price above the resistance at $42.4.
If Bitcoin and the altcoin market continue their weakness, HYPE risks breaking its immediate support at $38.4. Such a break would directly open the path toward $35.3, the critical level where $24 million in liquidations await. The timing appears particularly unfavorable, with overall market sentiment remaining fragile.
The 3-day Order Block and HYPE’s price structure are screaming distribution. Indeed, the rejection at the order block indicates smart money is defending this zone. As long as HYPE doesn’t break above $50, it remains bearish in the medium to long term.
Most importantly, HYPE was rejected 16% below its previous all-time high. This strategy is typically used by whales to exit the market optimally. The signals are therefore clear from a technical perspective: HYPE is heading toward $17 in the coming months or by next year. Only a breakout above $50 would invalidate this direction.
For traders, it’s now advisable to favor short positions as long as the long-term trend remains bearish.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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