Whales Accumulate as Hyperliquid (HYPE) Faces Bearish Reversal Below $38 Resistance

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• HYPE rejected near $38 EMA, signaling renewed bearish control.
  
• $292K in short liquidations highlight ongoing volatility.
  
• Whale accumulation may slow or reverse the downward pressure.

Hyperliquid (HYPE) has lost its upward momentum after a firm rejection near the $38.02 Exponential Moving Average (EMA). The move signals that sellers are tightening their grip, reinforcing short-term bearish sentiment. Technical indicators point to further weakness, with the daily chart now hinting at a possible head-and-shoulders formation—a pattern often linked to deeper corrections.

Unless HYPE can reclaim the $50 resistance zone, the broader trend remains tilted toward the downside.

Short Liquidations Add to Market Volatility

In the past 24 hours, data from Coinalyze shows more than $292,000 in short liquidations, highlighting heightened volatility as traders reposition around HYPE’s pullback. This rapid unwinding of leveraged positions reflects growing uncertainty and mixed sentiment among market participants.

Despite the price correction, the Stochastic RSI suggests that bearish momentum may be slowing, with early signs of potential stabilization as the indicator recovers from oversold territory.

Whales Step In Amid Market Turbulence

Large holders, or “whales,” appear to be increasing their exposure to HYPE. On-chain data from CryptoQuant shows a notable uptick in whale accumulation, implying confidence in a possible rebound. This accumulation could act as a buffer against further declines, or even trigger a short-term recovery if selling pressure subsides.

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However, the balance between whale activity and continued liquidation pressure will determine the token’s next move. If liquidation volumes grow, the correction could deepen; if whales continue to accumulate, it may set the stage for a relief rally.

Outlook: Tug-of-War Between Bulls and Bears

HYPE’s near-term outlook remains uncertain. The market is caught between whale optimism and technical weakness. Traders are watching closely for a decisive break above $50—or a fall below recent support levels—that could define the next major trend.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.