The price of Excessive Liquidity continued its decline on Tuesday after failing to hold above a major resistance area, raising concerns that a bearish double top pattern may now be forming on the daily chart.
summary
- Hyperliquid price fell towards $39 after forming a potentially bearish double top pattern near the $44-$45 resistance zone.
- The value of whale trades on Hyperliquid reached $4.236 billion, with long and short exposure remaining roughly balanced at a ratio of 0.98.
- A bearish MACD crossover and weak momentum indicators have increased the risk of a deeper correction towards the key $35 support level.
According to data from crypto.news, Hyperliquid (The noise) The price was down 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 its April lows near the $35 area.
The latest correction comes as whales’ total exposure to Hyperliquid has reached nearly $4.236 billion, with major traders showing… An unusually balanced position Between bullish and bearish bets. Long positions accounted for approximately $2.099 billion, while short positions were slightly higher at near $2.137 billion, producing a neutral long-to-short ratio of 0.98.
This situation indicates that institutional and high-net-worth traders remain uncertain about the market’s near-term direction despite high volatility across digital assets.
Meanwhile, investor sentiment surrounding the Hyperliquid ecosystem has remained relatively strong yet He releases One of the first US-listed ETFs linked to the HYPE token by 21Shares. Products include a spot ETF with proprietary exposure along with a leveraged fund linked to the decentralized derivatives platform.
The launch of the ETF has bolstered Hyperliquid’s growing institutional profile as the protocol continues to dominate perpetual decentralized futures trading. The platform currently controls a significant share of decentralized perpetual open interest while processing billions of dollars in daily trading volume.
However, it appears that traders have started taking profits after HYPE repeatedly failed to break the key resistance area between $44 and $45 over the past few weeks.
Excess fluid pricing analysis
On the daily chart, Hyperliquid price appears to have formed a bearish double top pattern with two major tops established near the $44-45 area. Typically, a double top pattern indicates weak upward momentum and often precedes a deeper correction once neckline support is broken.
The neckline of the pattern is currently located near the $35.2 support area, which also corresponds to the key horizontal support area that buyers defended aggressively during the consolidation phase in April.
A look at the MACD indicator reinforces the weak momentum outlook. The MACD histogram has turned negative again, while the MACD line has crossed below the signal line, confirming the bearish crossover and indicating that bearish pressure may continue to build in the short term.
Meanwhile, the Aroon indicator also indicates fading bullish momentum. The Aroon Up fell towards the 50% level while the Aroon Down remained weak near 7%, suggesting that buyers are gradually losing control of the trend even though broader bearish dominance is not yet fully evident.
If sellers can push HYPE below neckline support near $35, a bearish double top setup could lead to a larger correction towards the $31-32 area.
On the upside, the bulls will likely need to reclaim the $44 resistance area to negate the bearish structure and regain momentum towards the $50 psychological level.
Disclosure: This article does not constitute investment advice. The content and materials contained on this page are for educational purposes only.
