**Hyperliquid’s HYPE Token Faces Pressure Amid Market Volatility**
Hyperliquid’s native token, HYPE, is showing signs of weakness following recent market volatility. After several failed recovery attempts, the altcoin is struggling to maintain its footing above crucial support levels. While short-term traders are watching for a possible rebound, technical indicators suggest long traders should proceed with caution.
## Hyperliquid Traders Could Face Significant Losses
According to recent liquidation data, HYPE long traders could be at risk of up to $24.4 million in potential liquidations if the token drops to its critical month-long support at $35.3. This poses a substantial risk, as any sharp decline to this level could trigger a wave of leveraged position closures.
What’s more concerning is that this support zone has already been tested twice in the past month. A third test could severely undermine market confidence, discouraging new long positions and leaving HYPE exposed to increased volatility and further downward pressure.
## Technical Indicators Signal Bearish Momentum
The Moving Average Convergence Divergence (MACD) indicator is currently flashing early warning signs of intensifying bearish momentum. A recent bearish crossover suggests that selling pressure may continue. While the current downturn is not yet severe, any further decline in market confidence could accelerate losses.
If the overall crypto market sentiment deteriorates, HYPE may find it difficult to maintain its current trading range. A deeper bearish trend could prolong recovery efforts, prompting more traders to exit before conditions improve. Conversely, stabilization in Bitcoin and broader altcoin markets could help ease selling pressure on HYPE.
## HYPE Price Outlook: Key Levels to Watch
At the time of writing, HYPE is trading at $39.9, consolidating within a narrow range between $42.4 and $38.4. The odds of a decisive upward breakout remain limited unless market sentiment improves significantly and buyers return.
If bearish conditions continue, HYPE could lose its $38.4 support, putting the $35.3 level at risk once more. A breakdown below this key threshold could trigger millions in long liquidations, amplifying any decline and potentially delaying recovery.
On the other hand, if positive momentum returns and investor support strengthens, HYPE could attempt to breach the $42.2 resistance level. Successfully flipping this barrier into support might propel the altcoin towards $47.1, invalidate the current bearish scenario, and restore optimism among traders.
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*Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always conduct your own research before making investment decisions.*
https://bitcoinethereumnews.com/tech/hype-price-faces-major-liquidation-risk-should-traders-worry/
