Hyperliquid price is forming a bearish double top, will it crash back to $35?
Hyperliquid price extended its decline on Tuesday after failing to hold above a key resistance area, raising concerns that a bearish double top pattern may now be forming on the daily chart.
Summary
- The price of Hyperliquid dropped to $39 after forming a potential bearish top pattern near the $44–$45 resistance area.
- The whale position in Hyperliquid reached $4.236 billion, with long and short exposure remaining roughly equal at a ratio of 0.98.
- A bearish MACD crossover and sluggish momentum indicators raised the risk of a deep correction towards the key $35 support level.
According to data from crypto.news, the price of Hyperliquid (HYPE) dropped to around $39.2 at press time on May 13 after briefly trading above $44 earlier this month. Despite the recent pullback, the token remains well above the April lows near the $35 region.
The latest correction comes as the whale position in Hyperliquid reached about $4.236 billion in total exposure, with major traders showing an unusually balanced position between bullish and bearish bets. Long positions totaled about 2.099 billion, while short positions stood slightly higher near 2.137 billion, yielding a 0.98 to short ratio.
The trend suggests that institutional and high-value traders remain uncertain about the market’s near-term direction despite high volatility across digital assets.
At the same time, investor sentiment around the Hyperliquid ecosystem remains strong after the launch of the first US-listed exchange-traded funds tied to the HYPE token by 21Shares. Products include a local ETF with high exposure alongside a strong portfolio linked to a derivatives platform.
The launch of the ETF further bolstered Hyperliquid’s growing institutional profile as the protocol continues to dominate perpetual futures trading. The platform currently controls a large portion of open interest that remains suspended while processing billions of dollars in daily trading volume.
However, traders seem to have started to lock in profits after HYPE repeatedly failed to break through the key $44–$45 resistance over the past few weeks.
Hyperliquid price analysis
On the daily chart, the price of Hyperliquid seems to have formed a bearish top pattern with two major peaks established near the $44–$45 region. Usually, a double top pattern indicates bullish intensity and usually precedes a deeper correction when the neckline support is broken.
The baseline of the pattern currently sits near the $35.2 support area, which also coincides with a major horizontal support area that buyers defended aggressively during the April consolidation phase.
Looking at the MACD indicator reinforces the view of weak momentum. The MACD histogram turned negative again, while the MACD line crossed below the signal line, confirming a bearish crossover and suggesting that the downward pressure may continue to build in the short term.
Meanwhile, the Aroon indicator is also pointing to a bullish decline. The Aroon Up index has fallen to the 50% level while the Aroon Down is still down about 7%, indicating that buyers are gradually losing control of the trend even though the broad bearish dominance has not yet fully emerged.
If sellers are able to push HYPE below the neckline support near $35, a bearish double top setup could trigger a larger correction in the $31–$32 area.
On the other hand, the bulls will probably need to recover the $44 resistance area to invalidate the bearish frame and restore momentum to the psychological level of $50.
Disclosure: This article does not represent investment advice. The content and materials presented on this page are for educational purposes only.
