Hyperliquid (HYPE) has recently faced significant downward pressure, mirroring a broader cryptocurrency market pullback that has seen the altcoin breach critical support levels. This sustained retrace has sparked a crucial debate between bearish technical indicators and an intriguing surge in bullish bets from large investors.
HYPE's Price Plunge and Weakening Demand
HYPE's price recently plummeted to $29, decisively breaking through the $30 support level after failing to sustain $32. This represents a significant 4.9% daily and 8.9% weekly decline, pushing the altcoin below its short-term moving average (EMA20) and signaling mounting short-term bearish pressure. Compounding its challenges, Hyperliquid is grappling with severely weakened buy-side liquidity. The Demand Index has sharply fallen into negative territory, unequivocally indicating that selling pressure now outstrips buying interest, leaving HYPE susceptible to further price depreciation.
Whales Place Bets on a Rebound
Despite the prevailing market weakness and a host of bearish technical signals, a contrasting and notable trend is emerging from the futures market: a significant influx of capital into HYPE long positions by large investors. Whales, such as "BigMachiBrother," have strategically opened substantial long positions, contributing to over $1.31 million allocated to such bets within a 24-hour period. The altcoin's Long/Short Ratio holding above 1 across major exchanges further underscores a prevalent bullish sentiment among many traders, who appear to view the current price retrace as a temporary dip, anticipating a swift recovery.
Critical Juncture and Future Prospects
The technical outlook for HYPE remains challenging, with its price trading below the Double EMA (DEMA) and the SMI Stochastic Momentum Index continuing its downward trend, both pointing to fading upside momentum. While the influx of capital into long positions suggests a belief in an impending recovery, HYPE's immediate future hinges on whether this bullish sentiment can translate into genuine demand. If buy-side pressure fails to accelerate, HYPE risks breaching its $28 demand zone. Conversely, a substantial shift in market sentiment and a robust recovery in demand could see the altcoin reclaim $30 and potentially target $33.6, setting the stage for a pivotal period for Hyperliquid.
