Hyperliquid Sells Off Sharply, Technical Bounce Could Hit $33

• Hyperliquid is trading at $23.24, down 4.59%, with daily trading volume $844.61 million.
• Whale’s 5x long position is exposed to over $22.5 million floating loss as HYPE price goes below $22.5.
• Technical bounce may go up to $33, while the 50-day moving average may restrict recovery.

Hyperliquid (HYPE) is under renewed pressure as selling activity keeps the token pinned near recent lows. At the time of writing, HYPE is trading around $23.24, down 4.59% over the past 24 hours. The total trade volume for today is $844.61 million, with a market cap of $7.83 billion and a market dominance of 0.27%.

HYPE Slips Below Critical $22.5 Level

Hyperliquid continues its downward trajectory, now trading below $22.5, putting a significant whale position under pressure. Onchain Lens indicates that the dominant whale, who was 5x long, is currently facing a float loss in excess of $22.5 million, with HYPE dropping below the $22.5 mark. The liquidation price for this position is close to $20.66.

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Failure To Hold Raises Liquidation Risk

In terms of technical analysis, HYPE has also been indicating weakness for the past couple of weeks. On November 13, there was an obvious sell signal following the development of a head-and-shoulders formation that culminated in a descending price channel. This unfolded according to plan, with prices falling toward the target at $30 shortly thereafter.

Recently, HYPE has approached the lower boundary of this channel, opening the way for a possible short-term rebound. In addition, the daily RSI forms a bottoming pattern similar to that seen in mid-October, which had resulted in a strong rebound. On that occasion, the price increased by over 50%, even breaking through the 0.618 Fib level.

However, upside may meet stiff resistance. The 50-day MA on the daily chart has assumed the role of a ceiling, which will restrict the extent of any potential reversal. Although the 100-day MA tends to denote periods of a bear trend, the 50-day MA will likely provide the major resistance.

If this relief action continues, analysts expect $33 to be a possible target short term. However, a failure to hold current levels may continue to show pressure on HYPE and could trigger liquidation in heavily leveraged trades.

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