- HYPE falls for the sixth straight day as OI drops 5.9% and long liquidations dominate.
- Technicals turn sharply bearish after a 50/200 EMA death cross, with RSI near oversold and MACD sliding deeper negative.
- A break below $29.37 could send HYPE toward $26, then possibly near the $20 region.
Hyperliquid (HYPE) continued to drift lower on Tuesday, slipping another 3% and extending its losing streak to six straight days. The sentiment around the token has clearly shifted, with derivatives data showing traders pulling back hard as long positions get flushed out. The technical setup isn’t offering much comfort either, and unless momentum flips quickly, HYPE looks vulnerable to a deeper move toward the $20 zone.
Derivatives Market Shows Demand Drying Up Fast
Retail interest is fading as the entire crypto market pauses ahead of Wednesday’s expected U.S. Federal Reserve rate cut. According to CoinGlass, HYPE’s futures Open Interest fell 5.91% in the last 24 hours, dropping to about $1.44 billion. That’s a noticeable liquidity drain and usually a sign that traders are stepping back, waiting to see how macro events play out.
And it doesn’t stop there. Long liquidations piled up to $1.28 million over the past day, far outweighing the $88,160 flushed from short positions. When long liquidations dominate this heavily, it usually means buyers are getting forced out — not choosing to exit — which often accelerates bearish momentum instead of cooling it down.
Hyperliquid Eyes $20 as Technical Pressure Builds
Price action on the daily chart shows HYPE slipping below $30, which is lower than the November 22 swing low at $29.37. That level now becomes crucial. A firm close under it could send the token lower toward the S1 Pivot Point at $26.03. If sellers stay aggressive, the next major support sits near the October 10 low at $20.84 — or roughly $20 if fear really kicks in.
The technicals paint a rough picture. The 50-day EMA crossed below the 200-day EMA last Thursday, forming a bearish “death cross” that confirms downward pressure is building rather than easing. Meanwhile, the RSI sits near 34 and is still slipping toward oversold territory, signaling that sellers remain firmly in control. The MACD isn’t helping either — its lines dipped deeper into negative territory after a bearish crossover on Saturday, showing momentum is still tilting down.
What HYPE Needs to Recover
For any real recovery attempt, HYPE needs to reclaim the $30 level and push toward the descending resistance trendline near $34. Until that happens, the path of least resistance remains downward. With liquidity drying up, sentiment weak, and technical structure deteriorating, the charts lean strongly toward further downside unless a surprise bullish catalyst steps in.
