Hyperliquid has been under pressure for weeks. After failing to hold near fifty dollars the price started a steady slide. Since then HYPE has stayed inside a clear downtrend. It recently touched twenty two dollars before a small bounce. At the moment price sits near twenty three. This small rise does not change the bigger picture. The trend is still weak and sellers remain in control.
This long fall has caused serious damage in the futures market. Many traders expected a bounce and opened long positions. Instead price kept moving down. One large holder now sits on a very large paper loss. Reports show a whale holding a five times long position that is down more than twenty two million dollars. Even with this loss the position is still open. Liquidation sits just above twenty dollars.
Another large trader also opened a high leverage long earlier. That position also faces risk if price keeps falling. These actions show strong belief in a rebound. Whales often hold through pain when they expect a future move. Still conviction alone does not move price.
The futures market shows why pressure stays high. Most traders are betting on upside. The long short balance slightly favors longs. This means more people expect price to rise than fall. When price moves against them liquidations follow. Over two days more than seventy million dollars in long positions were wiped out. Shorts barely felt any impact.
This pattern tells us bullish leverage keeps getting flushed. Each drop forces more long traders out. This creates fast selling that pushes price lower. Until this stops any bounce stays weak.
Momentum tools also paint a bearish picture. The RSI sits near oversold levels. This shows sellers dominate for now. Price also trades below short term averages. This confirms strong short term weakness. Buyers have not shown enough strength to flip the trend.
Support near twenty two dollars is very important. This level has held so far. If price breaks below it the next stop sits closer to twenty. That move could trigger more forced selling. It could also put the large whale position at risk of liquidation.
Still oversold markets can bounce. If selling pressure slows and buyers step in a recovery could start. For that to happen price must reclaim key levels above. A close above the short term average near the mid twenties would be the first sign of strength. A stronger move would need price to push toward the high twenties.
For now bears control the market. Whale confidence has not stopped the fall. Futures traders continue to lose as price drifts lower. The trend remains down until proven otherwise.
In simple terms Hyperliquid is in trouble. Big money is hurting. Leverage is being cleaned out. Buyers need to show real strength to stop the slide. If they fail the path toward twenty dollars stays open.
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