Hyperliquid (HYPE) Price Drops Amid Continued Selling
Hyperliquid (HYPE) fell 3% on Tuesday, marking its sixth day of losses. Traders are selling due to heavy liquidations of long positions. The technical outlook remains negative, with a possible drop to $20 ahead.
Derivatives Market Shows Weak Demand
Interest in Hyperliquid is fading as the crypto market slows down. This happens before the US Federal Reserve’s rate decision on Wednesday. Data from CoinGlass shows HYPE futures Open Interest (OI) fell 5.91% in 24 hours to $1.44 billion. This drop means fewer traders are active.
- Long liquidations reached $1.28 million in one day.
- Short liquidations were $88,160, much lower than longs.
Technical Signs Point to More Downside
Hyperliquid is trading below $30, below its November 22 low of $29.37. A close below this could push the price down to $26.03, then $20.84.
The 50-day EMA crossed below the 200-day EMA, signaling a bearish trend. The Relative Strength Index (RSI) is near 34, close to oversold levels. The MACD also shows growing bearish momentum.
To start rising again, HYPE needs to break above $30. The next resistance is near $34.
