Hyperliquid’s native token HYPE is under renewed selling pressure, extending Monday’s losses by more than 2% as a broader risk-off mood grips cryptocurrency markets. The decline comes after HYPE retreated from its all-time high, with traders now closely watching whether the token can hold critical support levels near $61.92 and the 50-day EMA at $63.13.
Derivatives data from CoinGlass points to weakening sentiment among leveraged traders. Open interest in HYPE futures dropped over 1% to roughly $2.7 billion, signaling a reduction in active long positions. Over the same period, $2.8 million in total liquidations were recorded, with long liquidations accounting for $2.3 million, further tilting the market in favor of bears. The funding rate has also slumped to 0.0275%, reflecting a growing preference for short positions and expectations of continued downside.
Institutional demand, however, remains resilient. HYPE-focused exchange-traded funds attracted $10.36 million in net inflows last week, extending a nine‑week streak of positive flows. This steady accumulation contrasts sharply with the caution displayed by retail derivatives traders and suggests that long‑term buyers are still positioning in the asset despite near‑term volatility.
The technical picture has deteriorated. HYPE lost the ascending trendline that previously offered support around $68.50 and now trades near $65. The RSI has fallen to 44, dipping below the neutral 50 mark, while the MACD histogram continues to expand in negative territory, indicating building bearish momentum. A decisive daily close below the 50-day EMA at $63.13 could accelerate selling and open the door to a deeper correction toward $53.71, the next significant support.
External factors also play a key role. With Bitcoin hovering near $63,000, HYPE’s immediate direction may be dictated by broader market sentiment. If BTC stabilizes, the token could defend the $61.92 level and consolidate. Conversely, weakness in Bitcoin could trigger another wave of selling, even as Hyperliquid’s platform metrics remain robust—total open interest across the exchange has surged to nearly $11 billion, underscoring the platform’s dominant derivatives footprint. For now, HYPE finds itself at a make‑or‑break juncture, where holding support would frame the pullback as healthy consolidation, while a breakdown could erase gains from the recent record rally.
