Key Insights
- •HYPE drops 30% on the monthly chart, rebounds 8% in 24h with rising trading volume.
- •Large short positions continue despite partial liquidation, showing growing bearish pressure near $33.50.
- •Traders eye $29 as strong support level, expecting potential move toward $37 resistance zone.
Hypeliquid (HYPE) has experienced a 30% decline on its monthly chart, leading to speculation about a potential short-term recovery. Investors are now closely observing the asset as it exhibits signs of strength following this significant correction.
Currently, HYPE is trading at $34.72, marking an 8.04% increase over the past 24 hours. Traders and holders are paying close attention to key price levels for any indications of a price recovery.
Traders Monitor Key Support at $29, Targeting $37
Market analysts, including Crypto Bully, have identified the $29 zone as a crucial support level. A sustained hold at this level could facilitate a price movement towards the $37 mark. The $29 area has emerged as a robust support zone following the month's downturn, and traders are now assessing whether the price will continue its upward trajectory.
Despite the steep monthly decline, traders have not yet displayed signs of panic, with many viewing the pullback as a temporary phase. Market sentiment could shift if current price levels are maintained over the coming days.
HYPE's 24-hour trading volume has surged to $525 million, indicating increased market participation. The presence of large short positions has also become a notable aspect of the current market dynamics.
Short Interest Builds as Price Approaches Critical Levels
Concurrently, a significant short position has been established on HYPE, exerting additional pressure on the current price. According to MLM, a trader has initiated a short position of 2.1 million HYPE, valued at approximately $67.1 million, utilizing $6.9 million in margin. This trader's liquidation range is now situated near the $33.50 mark.
Although this trader has experienced a liquidation of $8.45 million in HYPE, they are maintaining a substantial short position. This ongoing activity suggests that bearish pressure persists, even though the price is currently trading above the liquidation threshold. The duration of this trading strategy remains uncertain.
Community Remains Focused on Long-Term Vision
Furthermore, long-term holders have maintained their positive outlook on the project, and the Hyperliquid team continues to advocate for patience. An update from Hyperliquid Daily stated, "If those core reasons remain as valid as ever, then this price dip isn’t a setback, it’s a rare chance to stack more at a discount."
Hyperliquid is designed as a high-speed decentralized exchange for perpetual trading. Despite experiencing short-term volatility, many holders express confidence in the underlying technology and the project's long-term development roadmap. Some members of the community are interpreting current price levels as a favorable opportunity to acquire more HYPE at a reduced cost.