Hyperliquid [HYPE] has so far been the most stable and consistent decentralized exchange (DEX) token. However, it still faces the impact of the bearishness in the entire crypto market.
At press time, the altcoin was down about 5.55%, which meant more pain for HYPE holders, especially those leveraged. The daily trading volume spiked by 61%, reaching a total of $263 million.
As the price continues to decline, even the most invested traders are struggling to hold onto HYPE. Can their positions be salvaged, though?
Biggest bull whale on HYPE is hurting
As per data from Lookonchain, the biggest Hyperliquid crypto bull whale was facing a massive loss. The whale’s 5x leveraged position of 1.38 million HYPE was down more than $17 million at press time.
To avoid liquidation, the whale added an additional $2.4 million USDC to the $35.9 million long trade. This took the new liquidation price to around $23.91.
The margin of the trade has been stretched thin, and its floating account value hit $5.207 million. With the entry position at $38.68 and the price around $26, it’s closer to liquidation.
Meanwhile, the current price structure outlook did not look favorable either.
HYPE price action screams more pain ahead!
On the charts, HYPE was trading just below a triangle pattern at press time. This was after breaking below the consolidation that followed the rally that was in late January 2026.
The MACD was showing bears were in control, though momentum was sluggish. On the other hand, the bear trend was almost peaking, as the Trend Strength Index (TSI) was at a negative 0.96.
The next target area is around $20 if the current move continues. This was supported by popular analyst Ali Martinez, who argued from a technical perspective.
This would mean more pain for the biggest HYPE bull whale.
Conversely, the breakdown could be a liquidity sweep. However, that is only if the altcoin reclaims the lost support at $28.45. That would increase the chances of hitting $150 in 2026, as previously predicted.
Hence, it would mean salvaging the long trade, or else the whale would be forced to deposit more capital to keep it open.
Can upside liquidity help salvage the position?
The Liquidation Heatmap showed that the recent pause in the HYPE price drop came after massive liquidity between $25.63 and $26.23.
Over $10 million worth of HYPE was liquidated. Hence, the price of the altcoin bounced back to around $26.60.
Currently, it is ranging, with most of the dense liquidity sitting above the price. This was bullish only if the price triggered these orders, as it could propel HYPE toward $29. That would reduce the whale’s losses.
Still, the price could drop for liquidity below $25.52, where about $3 million sits at the $25.32–$25.40 zone. Since liquidity is dynamic, triggering these levels could accelerate the drop toward $20, as more would form below $24.80.
Final Summary
- A Hyperliquid whale faces a massive loss but adds more $2.4M USDC to avoid liquidation on his long trade.
- HYPE was likely to hit $20, despite the high concentration of liquidity above the current price.
