HYPE Price Teeters Amid Weak Technicals and Soaring Liquidations

HYPE price has crashed by over 40% from its highest point this year amid the ongoing crypto market plunge. This plunge my accelerate as Hyperliquid market share shrinks and as liquidations remain at an elevated level. 

HYPE Price Technicals Signal More Downside Ahead

The daily timeframe chart shows that the HYPE price has slumped from a high of $59 in September to a low of $35 today. This plunge has mirrored the ongoing crypto market crash. 

HYPE price has plunged to the 50% Fibonacci Retracement level. It has also moved below the lower side of the giant megaphone pattern that formed between May and October. A megaphone is one of the most common bullish continuation signs in technical analysis.

The token has moved below the 50-day Exponential Moving Average (EMA). Also, the Supertrend indicator has turned red, while the coin has moved below the Ichimoku cloud indicator. 

The Average Directional Index (ADX) has jumped to 30, a sign that the downtrend is gaining momentum. Therefore, the most likely HYPE crypto price outlook is bearish. This view will become validated if the coin plunges below the key support level at $31.68, its lowest point on Friday. 

The bearish Hyperliquid price forecast 2025 will become invalid if the token moves above the lower side of the megaphone pattern. Such a move will push it to the psychological point at $50. 

Hyperliquid Liquidations Rising as it Loses Market Share

One potential bearish catalyst for the HYPE price is that bullish liquidations are elevated. This is happening as leveraged bullish traders become liquidated during the ongoing market crash. 

HYPE was one of the most liquidated tokens today, with positions worth over $26 million hitting their margin calls. This amount pales in comparison to the trades worth $830 million that were liquidated last Friday as the market sell-off accelerated. 

The steady liquidations will likely push more traders to remain in the sidelines in the near term. Some of the 1.6 million investors who were liquidated last Friday will likely avoid the market in general or using leverage. 

Another possible risk for the HYPE crypto price is that Hyperliquid is losing market share in the perpetual futures industry. Data shows that the network handled over $11.2 billion in volume in the last 24 hours, lower than the $11.24 billion that Aster processed. 

Lighter handled over $2.7 billion, while edgeX and ApeX Protocol handled $2.37 billion and $2.33 billion. In the past, Hyperliquid had the biggest market share by far.