The post HYPE Price Faces Major Liquidation Risk Should Traders Worry? appeared com. 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 anticipate a potential rebound, technical indicators suggest long traders should proceed cautiously. Sponsored Sponsored Hyperliquid Traders Could Face Losses The liquidation map reveals that HYPE long traders could face up to $24. 40 million in potential liquidations if the token drops to its month-long critical support at $35. 3. This would represent a substantial risk, as it could trigger widespread position closures among leveraged traders. What makes this development more concerning is that this level has already been tested twice in the past month. A third test could undermine market confidence and discourage new long positions, leaving HYPE vulnerable to increased volatility and downward price pressure. . HYPE Liquidation Map. Source; Coinglass The Moving Average Convergence Divergence (MACD) indicator is flashing early warning signs of intensifying bearish momentum. A bearish crossover recently occurred, suggesting a possible continuation of selling pressure. Although the current downturn is not yet severe, a decline in market confidence could accelerate losses. Sponsored Sponsored If broader crypto market sentiment worsens, HYPE could face difficulty maintaining its current trading range. A deepening bearish trend may prolong recovery efforts, pushing traders to exit before conditions improve. On the other hand, stabilization in Bitcoin and altcoin markets could ease selling pressure on HYPE. HYPE MACD. 9 at the time of writing, consolidating within a narrow range between $42. 4 and $38. 4. The chances of an upward breakout appear limited unless market sentiment improves considerably and buyers return. If bearish conditions persist, HYPE could lose its.
