Key takeaways
Hyperliquid (HYPE) has fallen below $70, extending its losing streak as broader crypto market sentiment turns risk-off.
Retail participation is weakening, with futures open interest declining and long liquidations dominating the derivatives market.
Hyperliquid (HYPE) continued to trade lower on Wednesday, slipping below the $70 level as cautious sentiment across the cryptocurrency market dampened retail participation.
The token has recorded three consecutive days of losses, reflecting growing uncertainty among short-term traders. Despite the pullback, institutional investors continue to show confidence, highlighting a divergence between retail and professional market participants.
Retail traders reduce exposure
Recent derivatives data points to weakening retail demand for HYPE. According to CoinGlass, Hyperliquid futures open interest (OI) declined by more than 2% over the past 24 hours to $2.80 billion, indicating that traders are either reducing leverage or closing positions altogether.
During the same period, the market recorded $7.09 million in liquidations, with approximately $6.29 million coming from long positions.
The dominance of long liquidations suggests that bullish traders have been forced to exit as prices moved lower, reinforcing short-term selling pressure.
Despite the decline in positioning, the funding rate remains positive at 0.0078%, indicating that some traders continue to maintain bullish expectations and are willing to pay a premium to hold long positions.
While retail sentiment has weakened, institutional interest continues to provide support.
Data from CoinGlass shows that HYPE exchange-traded funds (ETFs) attracted $4.32 million in net inflows on Tuesday, following $8.43 million in inflows recorded on Monday.
The continued inflows suggest that larger investors remain optimistic about Hyperliquid’s longer-term outlook despite ongoing short-term market volatility.
This divergence between institutional accumulation and cautious retail positioning could become an important factor in determining the token’s next major move.
Hyperliquid price outlook: Support near $64.75 comes into focus
At the time of writing, HYPE is trading around $68, maintaining its broader bullish structure despite recent weakness.
The token remains comfortably above its 50-day Exponential Moving Average (EMA) at $62.36, which continues to trend above the 200-day EMA at $48.40—a positive sign for the longer-term trend.
However, the recent rejection from a local resistance trendline near $72.75 has increased the likelihood of a deeper short-term correction.
From a technical standpoint, HYPE could continue sliding toward a rising support trendline around $64.75, an area reinforced by the nearby 50-day EMA.
Momentum indicators continue to lean cautiously bullish but show signs of slowing. The Moving Average Convergence Divergence (MACD) remains slightly above its signal line, indicating that positive momentum has not disappeared completely.
Meanwhile, the Relative Strength Index (RSI) sits around 54, reflecting moderate buying strength while gradually moving back toward neutral territory.
Unless buying activity strengthens, the current pullback could continue before the broader uptrend resumes.
The first major support lies near the ascending trendline around $64.75, followed by the 50-day EMA at $62.36. A decisive break below these levels could expose HYPE to a deeper correction, potentially bringing the $60 level into focus.
On the upside, bulls must reclaim the $72.73 resistance zone, which aligns with the recent descending trendline. A successful breakout above this level could restore upward momentum and pave the way toward the R1 Pivot Point at $77.09, followed by the R2 Pivot Point at $89.14.
For now, the short-term outlook remains cautious, with weakening retail demand offset by continued institutional accumulation.
