Hyperliquid Struggles to Break $50 Resistance
Hyperliquid (HYPE) has been unable to rise above the $50 level since Monday. The Relative Strength Index (RSI) on the 4-hour chart shows a bearish divergence, which means buying pressure is weakening. On-chain data reveals that Hyperliquid’s weekly fees and revenues are dropping. This suggests that demand is falling. Additionally, more than $22 million in long positions risk liquidation if HYPE falls to $46.
On-Chain Fees and Revenues Drop as Demand Falls
Hyperliquid is the top revenue-generating DeFi protocol in the past 30 days, excluding stablecoins like Tether and Circle. It earned $100.65 million in that period. However, weekly data shows fees and revenues have declined to $11.84 million and $10.63 million this week. This is a drop from $34.86 million and $31.10 million in mid-October. The decline suggests that liquidity and demand are weakening. Market volatility is making traders more cautious.
Bulls Increase Risk, But Liquidation Risks Remain
Retail demand for Hyperliquid remains strong as traders expect a price breakout. Data from CoinGlass shows HYPE futures Open Interest rose 9.11% in 24 hours to $2.17 billion. This points to a bullish market outlook. The funding rate of 0.0078% also supports growing trader optimism.
Despite this, the liquidation map shows $22.31 million in long positions are at risk if HYPE falls to $46. On the other side, about $14.74 million in short positions face liquidation if HYPE rises above $50.49. Buyers currently have more risk exposure.
Technical Outlook: Can HYPE Reclaim $50?
At press time on Thursday, HYPE trades above $48 but struggles to pass $50. The token remains above the 50% Fibonacci retracement level at $46.35, measured from its September 18 high of $59.41 to an October 17 low of $33.29. Key resistance levels lie at $51.43 and $56.60, marked by previous highs in early October and September.
The MACD on the 4-hour chart nears a bullish crossover that could signal renewed upward momentum. However, the RSI stands at 59 and is declining from an overbought zone. This signals weakening bullish momentum and warns of a bearish divergence.
If HYPE fails to surpass $50, it may retest the 50% Fibonacci level at $46.35 and possibly Monday’s low of $45.78. A drop to these levels could force liquidations of long positions, increasing the chance of a sharp sell-off or long squeeze.
