Hyperliquid’s native token HYPE has taken a hit, losing over 9% last week and nearing a 20% drop in the last month. Large holders are starting to unstake their tokens, moving them to centralized exchanges. This trend appears increasingly common among both retail and institutional investors, suggesting looming sell pressure.
The token’s price charts reveal a textbook descending channel pattern, signaling bearish momentum. On the brighter side, the platform’s recent efforts to diversify revenue through priority queue fees could bolster its business model by focusing on execution quality rather than sheer trading volume.
Liquidation Risk and Market Outlook
Analyst Base Case D pointed out a critical price level around $52.38 where long liquidation orders cluster heavily. Even a small dip below this threshold could trigger forced liquidations, accelerating the downtrend and potentially sparking a liquidation cascade. Traders should brace for near-term volatility and adopt a cautious approach.
Looking farther ahead, HYPE’s long-term technicals show mixed signals. While a bullish swing structure is suggested by a break above a recent high, bearish patterns at multiple timeframes hint at deeper retracements. A drop into the $32 to $42 range cannot be ruled out as internal momentum shifts downward and key support at $53.3 breaks on the 4-hour chart.
The broader crypto market mood, especially around Bitcoin, remains pessimistic, which could weigh on HYPE’s recovery prospects. Despite this, the token’s overall trend still leans positive in the long run, assuming the current correction clears the way for renewed upward movement.
This content is informational and should not be considered financial advice.
