Hyperliquid’s HYPE token faces significant downward pressure amid broad market bearishness, declining approximately 5.55%. A major leveraged whale has added $2.4 million to a long position now down over $17 million, while technical analysis suggests a potential further drop toward $20 despite a recent liquidity-driven bounce.
The Hyperliquid decentralized exchange token HYPE has been among the most stable DEX assets but is now feeling the impact of a wider crypto market downturn. At the time of reporting, the altcoin’s price was down about 5.55% with daily trading volume spiking 61% to $263 million.
A major bull whale is facing severe losses on a 5x leveraged long position of 1.38 million HYPE. To avoid liquidation after losses exceeding $17 million, the whale added $2.4 million in USDC, moving the new liquidation price to approximately $23.91.
The trade’s margin is thin, with a floating account value of $5.2 million against an entry near $38.68. With the price around $26, the position is now closer to potential liquidation.
On the charts, HYPE traded below a triangle pattern after breaking a consolidation period. The MACD indicated bears were in control, though the Trend Strength Index suggested the bear trend was nearly peaking.
Technical perspective from analyst Ali Martinez supports a next target area around $20 if the current move continues. This would inflict more pain on the largest HYPE bull whale.
Conversely, a reclaim of lost support at $28.45 could signal a liquidity sweep and increase chances for a previously predicted 2026 target of $150. Salvaging the long trade would otherwise require the whale to deposit more capital.
A Liquidation Heatmap showed the recent price pause followed over $10 million in liquidations between $25.63 and $26.23. The price subsequently bounced to around $26.60 and is currently ranging.
Most dense liquidity now sits above the current price, which is only bullish if HYPE triggers these orders to propel toward $29. Price could also drop toward $20 for liquidity below $24.80, where significant orders are positioned.
