The bearish outlook for Hyperliquid’s HYPE token continued to strengthen as selling pressure intensified in the market.
On April 20, HYPE was down over 6.15%, trading at $41.05 at press time. At the same time, trading volume jumped 101% to $348.95 million.
This combination suggested active participation, even as sellers drove prices down.
Is the structure of HYPE collapsing?
The daily chart showed that Hyperliquid (HYPE) maintained a higher and lower structure. However, the range tightened as the price increased.
This narrowing pattern resembled an ascending wedge, which often precedes downward moves.
If the price falls below $40.30, the next downside target could emerge near $36.70. However, holding above $41 could still support a near-term recovery attempt.
Momentum indicators indicated a weakening of the force.
The RSI fell to 52.70, signaling a slowdown in bullish momentum and a shift to neutral conditions.
At the same time, ADX rose to 26.66, indicating an upward trend despite slowing momentum. This combination showed that price direction remained firm, even as buying pressure eased.
Are whales and traders positioning themselves bearish?
Data from analytics platform Nansen reveals that HYPE’s top 100 addresses reduced their holdings by 39.99%, indicating increasing selling pressure and a potential sell signal.
Meanwhile, derivatives data reflected a similar sentiment.
The liquidation chart highlighted the key levels of $40.30 and $42.30, where traders remained overleveraged.
About $4.95 million in long positions were below the price, while $8.72 million in short positions were above it. This imbalance suggests that traders are expecting further declines in the near term.
Despite the bearish sentiment, DeFiLlama data highlights consistent strength in the protocol’s revenue, fees, and DEX volume. Recurring short-term declines followed by rapid recoveries indicate sustained user activity and healthy market participation.
Final summary
- HYPE fell more than 6%, with volume surging, showing strong participation despite downward pressure.
- Hyperliquid liquidation data shows greater short positioning above price, reinforcing expectations of continued decline
