HYPE completed a structured bearish move from $50 to near $22, confirming trend exhaustion and downside delivery.
Funding rates shifted from crowded longs to neutral, suggesting leverage has largely reset.
Price behavior now reflects consolidation risk as traders monitor $20–$15 accumulation zones.
HYPE is stabilizing after an extended selloff, trading near $24.40 following weeks of sustained downside pressure. Market structure shows a completed bearish phase, while positioning data points to reduce leverage and improve balance between buyers and sellers.
Bearish structure confirms downside completion
A recent update shared on X by Crypto Patel outlined the successful execution of a short trade on HYPE. The trade was initiated near $50 after the price failed to hold the upper boundary of a rising channel. That rejection signaled weakening bullish control and increasing distribution pressure.
https://twitter.com/CryptoPatel/status/2001917918528049215?s=20
Price later broke decisively below channel support, triggering a clear structural shift. The loss of key support accelerated sell-side momentum and limited recovery attempts. Former support zones repeatedly acted as resistance during retracements. This behavior confirmed a transition into bearish expansion.
The decline extended cleanly into the $22 region, completing a measured move of roughly 53%. Price delivery remained orderly, with limited volatility spikes. This structure suggests trend continuation rather than liquidation-driven selling. The downside objective aligned with predefined demand areas.
Funding data reflects sentiment reset
Alongside price action, Hyperliquid funding data provided insight into trader positioning. Early in the decline, funding remained elevated and positive as price traded above $55. This combination reflected aggressive long exposure late in the prior uptrend.
Source: Coinglass
As price rolled over, funding rates gradually compressed toward neutral. This shift indicated long de-risking rather than immediate bearish dominance. Traders reduced leverage while price declined in a controlled manner. Such phases often precede sharper directional moves.
During mid-October, funding briefly turned negative as price accelerated lower. Shorts gained dominance but failed to push funding deeply negatively. This suggests reactive positioning rather than extreme bearish conviction. Funding later stabilized near zero as price approached lower levels.
Accumulation focus emerges near lower demand
With price as of writing, trading at $24.40, attention has shifted toward longer-term positioning. Crypto Patel noted plans to transition from short exposure into phased accumulation. The highlighted accumulation zone sits between $20 and $15.
This region overlaps with prior consolidation and visible demand on the chart. Price remains below descending resistance, leaving room for further downside volatility. However, leverage conditions appear cleaner than earlier phases. That environment often supports base development rather than trend acceleration.
Market behavior currently reflects balance rather than urgency. Volume remains active, though directional conviction has softened. Buyers and sellers appear evenly matched near current levels. Directional clarity will likely emerge as price interacts with lower demand zones.
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