Hyperliquid (HYPE) has come under renewed pressure as broader crypto market weakness drags prices lower.

At press time, the HYPE token was trading near $28.16 after falling nearly 3% over the past 24 hours.

Notably, HYPE’s price decline closely mirrors the wider crypto market downturn, with most major digital assets moving lower at the same time.

The latest pullback in Hyperliquid aligns almost perfectly with losses seen in Bitcoin and the broader crypto market.

Bitcoin’s price has dropped over 2% during the same period, while total crypto market capitalisation declined by roughly 2.4%.

This synchronisation highlights Hyperliquid’s current role as a high-beta asset that tends to exaggerate wider market moves.

Extreme fear remains entrenched across crypto markets, with sentiment indicators showing investors remain defensive and hesitant to take new risks.

In such conditions, traders are more likely to reduce exposure rather than chase potential upside.

That behaviour helps explain why Hyperliquid’s price slipped despite the absence of negative news tied directly to the protocol.

Trading volume has also declined sharply, reinforcing the view that selling pressure lacks strong conviction and is more about capital preservation than panic.

Besides the market-wide fear, large traders on the Hyperliquid platform are sending mixed signals about near-term direction.

Whale-held positions currently total around $2.90 billion, with exposure almost evenly split between long and short trades.

From the information provided by the Coinglass real-time tracker, short positions slightly outweigh longs, and they are currently sitting on notable unrealised profits.

Long positions, by contrast, remain underwater, reflecting the recent pullback from higher levels.

This balance suggests that sophisticated traders are hedging aggressively rather than committing to a clear directional bet.

Such positioning often appears during periods of uncertainty, when traders expect volatility but lack confidence in a sustained trend.

As long as this standoff continues, price action is likely to remain choppy and reactive to broader market moves.

From a technical perspective, Hyperliquid is approaching an area that could prove decisive in the days ahead.

The zone around $27.50 is emerging as an important support level, and buyers are expected to defend it if selling pressure persists.

A clean break below that area would expose the token to a deeper pullback toward the $26 region.

Further below, historical price behaviour highlights a stronger support zone around $25.85.

This level has repeatedly attracted demand in the past and could act as a temporary floor if sentiment worsens.

On the upside, the price faces immediate resistance near $29.00, which has capped recent recovery attempts.

A sustained move above that level would improve short-term momentum and open the door toward $32 and beyond.

The post Hyperliquid slides as market fear surges: key support in focus appeared first on Invezz

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