Hyperliquid price moved lower on Tuesday after failing to stay above a major resistance area, raising concerns that the token may be forming a bearish double top pattern on the daily chart.
HYPE traded near $39.2 on May 13 after briefly moving above $44 earlier this month. The pullback has made traders more cautious, especially as the token has repeatedly struggled to break through the $44–$45 resistance zone.
Despite the latest weakness, Hyperliquid still remains well above its April lows near $35. That level has now become one of the most important support zones to watch.
Whale Positions Show Market Uncertainty
Large traders on Hyperliquid appear divided about the token’s next move.
Whale positioning reached around $4.236 billion in total exposure. Long positions stood near $2.099 billion, while short positions were slightly higher at about $2.137 billion. This created a nearly balanced long-short ratio of 0.98.
That balance suggests that big traders are not strongly leaning in one direction. Instead, they appear to be waiting for a clearer breakout or breakdown before making larger directional bets.
This type of positioning often shows uncertainty in the market, especially when price is trading near an important technical level.
ETF Launch Supports Institutional Interest
Even with the recent price decline, sentiment around the Hyperliquid ecosystem has remained relatively strong.
The token gained attention after 21Shares launched the first U.S.-listed exchange-traded funds tied to HYPE. These products include a spot ETF with staking exposure and a leveraged fund linked to the decentralized derivatives platform.
The launch helped strengthen Hyperliquid’s institutional profile. The platform has also continued to play a major role in decentralized perpetual futures trading, handling large trading volumes and maintaining a strong share of open interest.
However, positive ecosystem news has not been enough to push HYPE above the $44–$45 resistance area. As a result, some traders may now be taking profits after the strong recovery from April lows.
Hyperliquid Price Analysis
On the daily chart, Hyperliquid price appears to be forming a bearish double top pattern.
The two peaks have formed near the $44–$45 region, which has acted as a strong resistance zone. A double top usually signals that buyers are losing strength after failing to push the price higher on repeated attempts.
The neckline of this pattern sits near the $35.2 support zone. This level is important because buyers defended it during the April consolidation phase.
If HYPE falls below $35, the bearish setup could become stronger. In that case, the next downside target may sit around the $31–$32 region.
Momentum Indicators Turn Bearish
Technical indicators are also showing signs of weakness.
The MACD indicator has formed a bearish crossover, with the MACD line moving below the signal line. The histogram has also turned negative, suggesting that selling pressure may be increasing.
The Aroon indicator is also showing weaker bullish momentum. The Aroon Up has moved closer to the 50% level, while the Aroon Down remains low. This suggests that buyers are losing control, although sellers have not fully taken over yet.
Together, these signals show that HYPE may remain under pressure unless buyers step back in quickly.
Can HYPE Avoid a Drop Back to $35?
The $35 support zone is now the key level for traders.
If Hyperliquid price holds above this area, bulls may still have a chance to recover and attempt another move toward $44. A clean breakout above $44–$45 would weaken the bearish double top setup and could open the door for a move toward the psychological $50 level.
However, if sellers push the price below $35, the bearish pattern could confirm a deeper correction. In that scenario, HYPE may slide toward the $31–$32 range.
For now, Hyperliquid price remains at an important turning point. Bulls need to reclaim resistance, while bears are watching for a breakdown b
