Hyperliquid's native token HYPE has been trading within a tight range between $27.22 and $29.88 over the past week, with the market awaiting a decisive breakout direction. According to technical analysis, the token remains in a bearish trend on the daily timeframe, with key resistance levels at $29.88 and $30.68 remaining unbroken.
On-chain data from Dune Analytics reveals concerning metrics for the Hyperliquid platform, showing fewer active users and reduced trading volume since October. This decline in platform activity coincides with ongoing monthly HYPE token unlocks, though the market impact of these unlocks remains uncertain due to current market conditions affecting the HYPE buyback program.
The 4-hour chart shows a clear range formation with the $29.88 resistance near the upper extreme and support at $27.22 forming the lower boundary. Despite the range-bound price action, the On-Balance Volume (OBV) indicator has made new lower lows over the past three days, indicating persistent selling pressure even during consolidation.
Liquidation data from CoinGlass presents a mixed picture for potential price direction. Short positions show slightly more cumulative leverage nearby, while long positions have more leverage with liquidations clustered around the $26.5-$27 range. This creates uncertainty about whether liquidity will pull prices upward or downward first.
Traders are advised to wait for an impulse move that will likely result in a liquidity sweep toward either $31 or $26.5. The token's direction is expected to be heavily influenced by Bitcoin's price action, as Bitcoin's inability to break past the $94k resistance has contributed to muted market-wide sentiment. Against Bitcoin, HYPE has shown relative strength with a 1.2% gain, trading at 0.051362 BTC despite controlled movement in USD terms.
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