Hyperliquid caught between $36 support and $50 resistance: Where next?

Key Takeaways

Institutions and whales were shorting Hyperliquid with price being range-bound. Still, the altcoin’s structure was bullish, with OI and DEX showing strength.

Hyperliquid [HYPE] rose above the open price of $43 to almost $45 on the day per CoinMarketCap. The market cap maintained the $15 billion mark, with the daily drawdown less than 1%.

Since hitting the $51 mark, HYPE has reverted into a downward movement.

The decline came as whales coordinated an attack on Hyperliquid’s XPL token. This triggered liquidations that raised risk concerns for the ecosystem.

Big players going short on HYPE crypto

While Hyperliquid struggled to stay above the $40 mark, whales and institutions were shorting the altcoin. This aligned with the broader crypto market sentiment, which was seller-biased at the time of writing.

Recently, a whale shorted HYPE for a position worth about $3 million per Onchain Lens.

The positions were executed between $42.82 and $43 price range, with the whale seeing an unrealized loss of about $28,019 at press time.

Source: Onchain Lens

On the institutions side, Abraxas Capital were betting against the market. Their sell position on HYPE was valued at $64.39 million, with a 5x leverage.

Abraxas also shorted six other cryptos with Bitcoin [BTC], Ethereum [ETH], Solana [SOL], and Sui Network [SUI] having the biggest leverage of 10x. Others were Injective [INJ] and World Liberty Finance [WLFI].

Price action in dilemma!

Hyperliquid price was in dilemma as it showed mixed signals. The altcoin had broken below a rising trendline, but still maintained a stay above the SuperTrend indicator.

Since the high on the 14th of July, when HYPE hit the $50 zone, the altcoin has traded inside a range. HYPE has failed to stay above the $50 zone with three consecutive rejections.

Prices were oscillating around the midpoint of the range between $36 and $50. However, HYPE was making higher lows in this confinement.

Source: Trading View

The Chaikin Money Flow (CMF) further stressed on the altcoin’s weakness with -0.25 reading indicating capital outflow.

The $36 price level was the make-or-break zone for HYPE. Price could dip to the zone to initiate a stronger move that could break the $50 resistance.

Alternatively, a breakdown would invalidate the current bullish structure.

Hidden power still brewing

Onchain data displayed hidden strength despite price being in a consolidation.

Its open interest (OI) per CoinGlass was at $1.84 billion, higher than that of the last 2 days. However, this was a dip from $2.06B with the highest OI on Hyperliquid exchange.

Additionally, Hyperliquid’s hit record highs of $398 billion in DEX volume over the last month. The last 24 hours recorded about $1.20B, affirming its hidden strengths.

Source: Sentora

In summary, HYPE maintains a bullish outlook in the long-term, but price still confined in a range. Traders need to watch actions by the big players and price structure to gauge HYPE’s next move.