The fact that a new wallet bought 1 million USDC HYPE amid a price crash and long liquidity exceeding 932K USD shows a strong change in sentiment and technicals of the HyperLiquid Token (HYPE).
The bearish sentiment, pessimism hitting a 2-month low, and strong selling pressure have HYPE facing the important levels of $36.86 and $40 with the risk of a deep decline or short-term rebound.
MAIN CONTENT
New wallet with 1M USDC deposits buys over 25,500 HYPE as price drops 6% in 24 hours.
Long liquidity on HYPE exceeds $932K, mostly in highly leveraged positions.
HYPE price breaks ascending support, $40 zone becomes key point to decide next trend.
Why is trader sentiment on HYPE plummeting?
Positive sentiment on HYPE plunged to 18.02, its lowest in more than two months, according to an index tracked by Santiment.
This reflects widespread fear as prices fall sharply and volatility increases, suggesting that many traders are taking risks. According to market research, extreme fear is often followed by rallies or deeper declines depending on the situation.
The current pessimistic sentiment could create opportunities for contrarian investors as the market shows signs of stabilization.
Nguyen Van Long, Cryptocurrency Market Analyst, 07/2025
Is large long liquidity a warning sign or a recovery opportunity?
Long liquidity was more than 20 times that of shorts, with over $932K liquidated while shorts were only about $43K, indicating that highly leveraged long positions were cut short as prices fell below key support.
HyperLiquid alone accounted for $561K of this liquidity. While the losses for leveraged traders are huge, this could also be a washout of weak positions, creating a solid foundation for a recovery if selling pressure does not increase further.
According to CoinGlass, such large liquidity bursts often signal an immediate market reset.
Will the support break change the trend of HYPE?
HYPE just fell out of the ascending channel as it failed multiple tests of the $40–$43 range, indicating that the previous bullish structure has been broken.
The bearish momentum is increasing, with important support levels at $36.86 and if weakness continues, further losses towards $30.86 are possible. The Stochastic RSI is also pointing down, warning of short-term downside risk.
As an analyst, I consider a quick return of HYPE above $40 as a necessary condition for a bearish trend reversal.
Failure to hold the $40 level will increase the likelihood of entering a deep correction phase in the short term.
Tran Thi Mai, Director of Crypto Asset Portfolio Analysis, 07/2025
Will $40 Be the Tipping Point for Short Positions?
Data from the liquidity map shows that short closing pressure is concentrated in the $40–$42 price range, which could create a short squeeze if HYPE price recovers above this level.
The current price around $38.22 is lower than this zone, requiring buyers to be active to push the price through the key level to trigger short-selling pressure.
Otherwise, the sellers will still have the upper hand, creating further downward pressure or at least maintaining the lurking sideways trend. This is an important technical factor that traders need to pay attention to.
HYPE Overview and Future Outlook
A massive $1 million USDC buy amid a sharp price drop, hundreds of thousands of dollars in long liquidations, and broken support puts HYPE in a complicated market state.
Despite the pressure, the $40 and $36.86 areas are still the deciding points for HYPE's next move. Investors should closely monitor developments here to consider strategies between the possibility of continued decline or rebound thanks to short leverage being squeezed by cerrar.
Frequently Asked Questions
Why is a new wallet buying a large amount of HYPE when the price is down?
It is a sign that advanced investors are underestimating current prices, believing in the potential for a long-term recovery, or creating positive technical pressure.Is large long liquidity a bad sign?
Large long liquidity means many long positions are liquidated, but it can also be a reset to remove weak positions, creating conditions for a new recovery wave.What is the short term trend of HYPE now?
The trend is bearish, the price broke the rising channel and the RSI indicator crossed down. However, the $40 level is an important level for recovery.How low can HYPE price go?
If $36.86 is lost, the price could theoretically retest the $30.86 area, based on technical analysis and previous support.How to take advantage of this volatility?
Traders should monitor support and resistance zones, combining liquidity and technical signals for effective risk management.
Source: https://tintucbitcoin.com/hype-tien-dien-tu-nhan-von-trieu-usd/
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