Hyperliquid’s HYPE token is attempting a steady recovery, but derivatives data shows $28.9 million in short liquidations clustered above $35, leaving traders exposed to a potential volatility spike.
The liquidation map indicates dominant bearish positioning in futures markets, with a heavy concentration of short contracts that could be forcibly closed if HYPE decisively breaks above $35.
If triggered, those liquidations could amplify upside momentum and rapidly shift market sentiment, even as broader resistance levels continue to cap price action.
Technical indicators offer tentative support for a rebound, with the Moving Average Convergence Divergence registering a bullish crossover that typically signals strengthening upward momentum.
A sustained move above $34 could open the path toward $36 and place the $35 liquidation cluster in play, potentially accelerating gains toward $38 and bringing the 50-day and 200-day exponential moving averages closer to a potential Golden Cross formation, and following the announcement the Hyperliquid share price was unchanged at $N/A.
However, macro uncertainty and geopolitical tensions could dampen risk appetite, limiting follow-through buying pressure despite improving momentum signals.
A breakdown below the $30 support level would invalidate the near-term bullish thesis and expose $26 as the next major downside target, disrupting the month-and-a-half uptrend structure currently in place.
At the time of reporting, Hyperliquid price was $32.35.