Is the HYPE Fading? Hyperliquid’s 25% Rally Faces a Reality Check
Hyperliquid's recent 25% rally is showing signs of weakening due to failed breakouts, declining volume, and high leverage favoring long positions.Summary
Despite outperforming Bitcoin and Ethereum with a recent 25% rally, Hyperliquid (HYPE) is showing signs that its upward momentum is fading. Technical indicators suggest internal weakness, including failed breakouts near the $36 zone and bearish divergence between price and the Relative Strength Index (RSI). Furthermore, the On-Balance Volume (OBV) has been trending lower while the price increased, indicating weakening spot buying support.
Compounding this technical caution, derivatives positioning is heavily skewed toward long positions (about 60% skew), creating structural vulnerability. This long-heavy environment is prone to accelerated selling pressure if a minor correction triggers forced liquidations.
Key price levels to watch are $37 for continued upside confirmation, with resistance at $42. Conversely, the $28 level is critical support; a daily close below this point could trigger significant long liquidations and a potential slide toward $21.
(Source：BeInCrypto)