Hyperliquid's $HYPE token has shown signs of recovery but faces strong resistance in futures markets. A cluster of $28.9 million in short liquidations looms above the $35 price level, potentially amplifying volatility if breached. Technical indicators suggest building upside momentum, though broader market conditions could influence the outcome.
Hyperliquid's price has made a steady recovery in recent sessions, recapturing some earlier losses without fully surrendering its bullish momentum. Despite this, futures market data points to persistent bearish pressure, with positioning indicating strong resistance that leaves the altcoin exposed to sudden swings. Spot traders appear cautiously optimistic, while derivatives reflect ongoing downside expectations.
The liquidation map reveals a significant concentration of $28.9 million in short positions vulnerable above $35. This heavy short exposure signals that many futures traders anticipate further declines, yet it also sets the stage for a potential short squeeze. A decisive move past $35 could trigger these liquidations, fueling rapid upside volatility and possibly shifting sentiment toward the positive.
On the technical front, the Moving Average Convergence Divergence (MACD) indicator produced a bullish crossover on Sunday, a development that typically signals strengthening buying pressure. Momentum oscillators also indicate improving trend conditions, even amid skepticism in the futures arena. If spot demand syncs with these signals, $HYPE might gain upward traction in the short term.
Currently, $HYPE grapples with mixed signals, its path hinging on wider cryptocurrency market dynamics. Geopolitical tensions and macroeconomic uncertainties may curb risk appetite among investors. Should the market sidestep a sharp bearish turn, $HYPE could test resistance at $34 and aim for $36, nearing the liquidation cluster. This might propel gains to $38 and draw the 50-day and 200-day exponential moving averages nearer, possibly forming a Golden Cross after the liquidations.
In contrast, a drop below $30 support would turn sentiment negative, targeting $26 next and breaking the uptrend that has held for about a month and a half.
