Hyperliquid’s token, Hyperliquid (HYPE), slipped further under the $60 level on Wednesday, trading below its 50-day exponential moving average (EMA) of $62.70. The move reflected a pullback in investor demand alongside a technical setup that continues to favor sellers, even as on-chain and derivatives activity showed some signs of engagement.
Analysts pointed to easing ETF flows and weaker retail participation as key drivers, with additional pressure coming from longer liquidations than short liquidations—suggesting recent weakness has been borne more by long positions than short bets.
Key takeaways
- Price move: HYPE remained below $60 and under the 50-day EMA at $62.70, reinforcing short-term bearish momentum.
- Catalyst: HYPE-focused ETFs recorded net outflows, including $700,000 on Tuesday after $7.3 million in withdrawals the prior week, according to CoinGlass.
- Derivatives pressure: Long liquidations of $2.8 million outpaced short liquidations of $133,430, highlighting that downside pressure was concentrated in longs.
- Key implication: Bears retain control while HYPE holds below the 50-day EMA; reclaiming it would be the first step toward a technical improvement.
What drove the move
According to CoinGlass’s ETF data, HYPE-focused exchange-traded funds posted $700,000 in net outflows on Tuesday, following $7.3 million in withdrawals last week. The report also noted that this marked a reversal after nine consecutive weeks of net inflows, a shift that suggests larger investors have paused or reduced buying pressure.
Separately, Lookonchain flagged potential changes in positioning by Multicoin Capital. The platform reported that a wallet believed to be associated with the firm transferred 395,570 HYPE to Coinbase Prime and requested the unstaking of 211,486 HYPE. Lookonchain added that Multicoin Capital accumulated about 606,091 HYPE roughly five months ago at an average purchase price near $30, making any reduction in exposure noteworthy for market participants.
Market reaction and derivatives signals
Derivatives indicators pointed to a more cautious stance among leveraged traders. CoinGlass data showed Hyperliquid futures open interest (OI) declined 2.4% over the past 24 hours to $2.5 billion, implying that outstanding leveraged positions were reduced as the spot price eased.
Liquidation dynamics, however, skewed toward longs. Long liquidations totaled $2.8 million, significantly higher than $133,430 in short liquidations. That imbalance is consistent with a market in which price weakness has mainly forced long positions to unwind, rather than triggering short-seller liquidations.
Not all activity was negative. Trading volume rose 41% to roughly $2.4 billion, suggesting that participation picked up even while price remained weak. The funding rate also moved slightly higher to 0.0009% from -0.0013% the day before, a shift that indicates improvement versus a previously more bearish funding backdrop—but the reading remained close to neutral, implying futures positioning was still indecisive rather than decisively bullish.
Technical levels investors are watching
Technically, HYPE’s position below the 50-day EMA of $62.70 was central to the bearish bias. The token continued to trade beneath that trend gauge, reinforcing near-term downside momentum. At the same time, it remained above the 200-day EMA at $49.95, preserving the broader long-term uptrend and limiting how aggressively the market can interpret the move as a fully structural breakdown.
Price action also pointed to a nearby inflection area. Sellers pushed HYPE below a key $60.41 support level, and the next demand zone was identified around $54.19. Momentum indicators aligned with that caution: the relative strength index (RSI) sat around 48, below the neutral 50 mark, while the moving average convergence divergence (MACD) reportedly remained below its signal line in negative territory—conditions that typically make rebounds harder to sustain.
For a more constructive shift, HYPE would need to reclaim the 50-day EMA at $62.70. A successful move above that level would likely put the next demand area around $66.22 in focus, followed by resistance near a descending trendline around $69.87. If those barriers fell, the analysis suggested attention could turn to a retest of Hyperliquid’s all-time high at $76.93.
Bigger picture
The near-term outlook remains sensitive to ETF demand, changes in institutional exposure, and whether derivatives positioning stabilizes. While volume increased and futures funding turned slightly less negative, the broader picture—outflows from HYPE ETFs, reported trimming of exposure by a major player, and bearish momentum signals—suggested that the downside path may still dominate unless HYPE can reclaim the 50-day EMA.
Investors will likely watch how HYPE behaves around $60 and whether it can hold above $54.19. Any additional ETF flow updates and further changes in futures open interest and liquidation trends could offer early clues on whether the market is preparing for a recovery attempt or staying in risk-off mode.
