Hyperliquid Price Creates Bearish Double Top: Is a Drop to $35 Imminent?
The price of Hyperliquid continued its downward trend on Tuesday after not managing to maintain levels above a crucial resistance area, leading to worries that a bearish double top pattern may be emerging on the daily chart.
Summary
- The Hyperliquid price dipped to approximately $39 after forming a potential bearish double top near the $44–$45 resistance zone.
- Whale positioning for Hyperliquid reached $4.236 billion, with long and short positions remaining almost balanced at a ratio of 0.98.
- A bearish crossover in the MACD and declining momentum indicators have heightened the likelihood of a deeper correction towards the critical $35 support level.
According to data from crypto.news, the price of Hyperliquid (HYPE) dropped to around $39.2 as of May 13 after briefly trading above $44 earlier this month. Despite this recent decline, the token remains well above its April lows near the $35 threshold.
The latest adjustment occurs as whale positioning on Hyperliquid has reached about $4.236 billion in total exposure, with significant traders displaying an unusually neutral stance between bullish and bearish positions. Long positions accounted for roughly $2.099 billion, while short positions were slightly higher at about $2.137 billion, resulting in a near-neutral long-to-short ratio of 0.98.
This positioning indicates that institutional and high-net-worth traders are uncertain about the near-term market direction despite the heightened volatility within digital assets.
Investor sentiment around the Hyperliquid ecosystem has also remained fairly robust following the launch of the first U.S.-listed exchange-traded funds tied to the HYPE token by 21Shares. These products include a spot ETF with staking exposure, alongside a leveraged fund linked to the decentralized derivatives platform.
The ETF launch has further solidified Hyperliquid’s growing institutional presence, as the protocol continues to dominate decentralized perpetual futures trading. The platform currently holds a significant portion of decentralized perpetual open interest while handling billions in daily trading volume.
However, traders seem to be starting to lock in profits as HYPE has repeatedly struggled to surpass the key $44–$45 resistance zone in recent weeks.
Hyperliquid price analysis
On the daily chart, the price of Hyperliquid appears to have formed a bearish double top pattern with two prominent peaks around the $44–$45 area. Typically, a double top pattern indicates weakening bullish momentum and often precedes a deeper correction once the neckline support is breached.
The neckline of this formation is currently positioned around the $35.2 support zone, which coincides with a significant horizontal support area that buyers vigorously defended during the April consolidation phase.
Examining the MACD indicator reinforces the outlook of diminishing momentum. The MACD histogram has turned negative again, while the MACD line has crossed below the signal line, indicating a bearish crossover and suggesting that downside pressure may continue in the short term.
Additionally, the Aroon indicator reflects waning bullish momentum. The Aroon Up indicator has decreased toward the 50% level, while the Aroon Down remains low at around 7%, indicating that buyers are gradually losing control of the trend, although broader bearish dominance has not yet fully asserted itself.
If sellers succeed in driving HYPE below the neckline support near $35, the bearish double top setup could instigate a greater correction toward the $31–$32 range.
On the upside, bulls would need to reclaim the $44 resistance level to negate the bearish structure and restore momentum toward the psychological $50 mark.
Disclosure: This article is not intended as investment advice. The content and materials presented on this page are for educational purposes only.