Key takeaways
What does the recent EMA rejection indicate for Hyperliquid’s near-term price action?
This signals further downside pressure, keeping sellers in check for now.
How are whales reacting to the increasing volatility and liquidations of Hyperliquid?
They are accumulating positions, potentially preparing for a near-term rebound.
Hyperliquid (HYPE) lost momentum after retesting key exponential moving average (EMA) resistance near $38.02. Rejection at this level signals further downside pressure, with sellers retaining control in the near term.
On the daily chart, HYPE is about to form a head and shoulders pattern, a bearish pattern that has preceded past price declines. This supports the token’s long-term bearish bias unless it breaks above the $50 resistance zone.
Meanwhile, the Stochastic RSI suggests further corrections in the near term. It recently rebounded from an oversold region, suggesting that downside pressure may be easing.
Source: TradingView
With conflicting long-term and short-term market signals, traders are now wondering if the recent surge in whale orders can stabilize the trend. Or will rising liquidations continue to push prices down in the short term?
Strong wave of liquidations
According to recent data from Coinalyze Liquidations, Hyperliquid is experiencing an increase in liquidations in the short term. In the last 24 hours alone, over $292,000 worth of HYPE has been wiped out.
This spike highlights the growing volatility in the market, as traders attempt to navigate HYPE’s ongoing price correction.
Source: Coinalyse
HYPE whales are moving
Despite the turbulence, whales appear to be doubling down, adding more positions as they try to delay or counter the wave of selloffs hitting the market.
This activity suggests that large holders are trying to protect their long exposure, or possibly position themselves for a rebound if the selling momentum falters.
Source: CryptoQuant
Whale Strategy vs. Market Dynamics
For now, the balance between whale accumulation and increasing liquidation levels will likely dictate HYPE’s next move.
A sustained increase in long-term liquidations could worsen the correction, while a resumption of whale activity could absorb pressure and trigger a near-term reversal.
