Hyperliquid (HYPE) price is at $38.27, a decrease of 2.31% today. Due to a formed double top pattern and a large liquidation cluster at $35.03, there is a high chance that the price will accelerate further down.
The token has not maintained above $42.67 and the price is now consolidating. Two separate signals are currently determining the short-term trend line.
HYPE long traders should be concerned
The HYPE liquidation heatmap shows that there is a cluster of leveraged long positions around $35.03. The total leverage amount for long liquidations at this level is $27.36 million.
A drop below $35.03 would force these positions to close quickly. This could lead to additional selling pressure causing a decline to happen even faster and further than the initial breakout downward.
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The heatmap shows that there is little liquidation buildup between $38 and $35, making it likely that the price can easily drop through that area. There is also little long leverage above $39, further decreasing the chance of a reversal due to buying power before the $35.03 level.
Selling Pressure Set dominates hype
The Klinger Oscillator (KVO) is now at 8.09K on the daily chart, just above the zero line and clearly moving downwards. The signal line (green) is already declining and the KVO (blue) is heading towards a bearish cross.
The Klinger Oscillator measures the difference between two volume-weighted exponential moving averages (EMAs) of the price and shows whether money is flowing into or out of the asset. If the value is above zero, buying pressure dominates. If it falls below zero, selling pressure prevails.
The indicator peaked around 25K in early March, coinciding with the HYPE rally to $43.76. Since then, momentum has been declining with three consecutive lower highs, a pattern that shows buying pressure continues to diminish, just like the price movement.
If the KVO actually closes below zero, the volume-weighted momentum shifts from bullish to bearish. On the daily HYPE chart, previous KVO declines below zero have always led to further price declines.
The 0.382 Fibonacci level is at $36.83 and is the first important demand area before the price reaches the $35.03 liquidation cluster. If the KVO breaks below zero while the price dives below $36.83, the path to $32.33 — the 0.618 Fibonacci level — becomes the most likely scenario.
HYPE price levels to watch
The daily chart shows that HYPE has completed a double top pattern that is now active. The price is currently at $38.27, directly around the support at that same level.
The complete downward target of the pattern is measured from the breakout point, the neckline at $35.03. Thus, HYPE can drop to $21.64 with a confirmed breakout, which corresponds to a drop of 37.49% as indicated on the chart.
Holding $35.03 is therefore essential for bulls. Only a daily closing price below this level confirms the double top and first opens the way to $32.33 and then $28.69.
To invalidate the bearish expectation, HYPE must first reclaim $38.80 and then convincingly rise to $42.67. A breakout above $42.67 completely invalidates the double top pattern and shifts the focus back to the resistance at $47.15.