Hyperliquid – Why THIS pattern could trigger more HYPE losses!

Key Takeaways

What does the recent EMA rejection indicate for Hyperliquid’s short-term price action?

 It signals renewed bearish pressure, keeping sellers in control for now.

 How are whales responding to Hyperliquid’s rising volatility and liquidations? 

They’re accumulating positions, potentially preparing for a short-term rebound.

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Hyperliquid[HYPE] has lost momentum after retesting a key Exponential Moving Average (EMA) resistance near $38.02. The rejection at this level signals renewed bearish pressure, with sellers maintaining short-term control.

On the daily chart, HYPE is close to forming a head-and-shoulders pattern, a bearish setup 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 short-term corrections. It recently bounced from an oversold region, hinting that bearish pressure may be easing.

With conflicting long-term and short-term market signals, traders are now asking whether the recent surge in whale orders can stabilize the trend. Or will rising liquidations keep driving prices down in the near term?

Short liquidations surge

According to the recent Coinalyze Liquidations data, Hyperliquid is seeing a surge in short liquidations. Over the last 24 hours alone, over $292K worth of HYPE was wiped out.

The spike highlights rising volatility across the market, as traders attempt to navigate HYPE’s ongoing price correction.

HYPE whales are making moves

Despite the turbulence, whales appear to be doubling down, adding more positions as they attempt to delay or counter the wave of liquidations hitting the market.

This activity suggests large holders are trying to protect their long exposure, or possibly position themselves for a rebound if selling momentum fades.

Whale strategy vs. market momentum

For now, the balance between whale accumulation and rising liquidation levels will likely dictate HYPE’s next move.

A sustained increase in long liquidations could deepen the correction, while renewed whale activity might absorb the pressure and spark a short-term reversal.