Hyperliquid (HYPE) has seen a 2.06% drop in its price in the last 24 hours, trading at $12.63 at the time of writing. The cryptocurrency’s market cap stands at $4.21 billion, reflecting the same 2.06% decrease. The fully diluted valuation (FDV) for HYPE is $12.63 billion, and its 24-hour trading volume has plunged 43.34%, down to $56.32 million. With a circulating supply of 333.92 million tokens and a total supply of 999.99 million tokens, the drop in trading volume highlights the current lack of momentum in the market.

Whale Activity and Margin Addition

A significant factor influencing the price movement of Hyperliquid has been the activity of a whale on the platform. On March 24, a whale address (0x507…BeDb6) opened a 10x leveraged long position on PEPE at $0.00814 per 1,000 PEPE. The position size was $27.53 million, but it is currently facing an unrealized loss of $3.238 million. The liquidation price for this position is set at $0.005219, which is quite close to the current price of PEPE.

In an effort to avoid liquidation, the whale added 3.818 million USDC to the margin within the past 21 hours. This action, while temporarily preventing liquidation, also highlights the pressures that leveraged positions face in a volatile market. The whale’s decision to add margin further underscores the risks involved in high-leverage positions in the crypto market, where prices can fluctuate rapidly.

Market Struggles and Key Levels for HYPE

As of now, HYPE faces strong resistance at the $14.50 level. If the cryptocurrency can break through this resistance, the next target on the upside would be $16.00. A successful breakout above $16.00 could lead to further gains toward $17.50, but this would require significant market momentum. On the downside, HYPE has strong support at the $12.00 mark. A drop below this level could see the price of HYPE push toward $10.50, and if bearish momentum continues, the price could decline further to $9.00, indicating a deeper correction.

Technical Indicators and Market Sentiment

Currently, the Relative Strength Index (RSI) stands at 31.89, just shy of the oversold territory, suggesting that the asset is in a weak buying position. If the RSI rises above 40, it could signal a trend reversal and indicate that the market is primed for a possible recovery. However, if the RSI remains below 30, the bearish sentiment could continue, with the price potentially facing further declines.

HYPE’s short-term moving average (SMA) is also positioned below its long-term moving average (LMA), confirming the bearish trend in the market. This indicates that the cryptocurrency is currently in a downtrend, and the outlook for the near term remains negative unless a reversal takes place. A crossover of the moving averages above the $13.50 mark could signal a shift in momentum toward a more bullish outlook.

Furthermore, the Chaikin Money Flow (CMF) indicator shows a value of -0.11, suggesting capital outflows from the asset, reinforcing the weak buying interest in the market. A CMF reading above 0.05 would indicate accumulation, which could increase bullish sentiment and help reverse the current downtrend.

Conclusion

Hyperliquid (HYPE) is currently navigating through a period of volatility, with its price facing downward pressure. Whale activity, specifically the addition of $3.8 million USDC to prevent liquidation, has added another layer of complexity to the price movement. Traders are watching closely for a potential breakout above $14.50 or a breakdown below $12.00, as these levels will likely determine the next significant move for HYPE.

While the RSI and CMF indicators suggest that bearish sentiment prevails, a potential crossover in the moving averages or a rise in the RSI could indicate a shift in momentum. However, until those indicators change, HYPE remains under the influence of market resistance, whale actions, and weak buying momentum. As always, investors should remain cautious in such a volatile market and closely monitor the key levels mentioned above.