The Hyperliquid (HYPE) token has recently been under pressure, as it struggles near a critical support level, with the potential for further price declines. A whale investor, who made a significant purchase in the market, is now facing a substantial loss, adding uncertainty to the token’s future price movement.

Whale’s Struggle and Market Conditions

A prominent whale had previously invested a substantial amount into Hyperliquid’s market, depositing $600,000 USDC to strengthen their position in HYPE. This investor made an impressive purchase of over 362,000 HYPE tokens at an average price of $19.34, totaling around $7.01 million. However, with the current downturn in the market, the whale is now facing a staggering loss of $1.39 million. This loss is a result of the downward pressure that HYPE has been experiencing as it struggles to maintain its position above key support levels.

At the time of writing, HYPE was trading at approximately $15.13, showing a 4.12% decline over the past 24 hours. This has led to concern among investors, including the whale who invested heavily in HYPE. The current price action and market sentiment are suggesting that HYPE is in a precarious situation, with risks of further decline.

Technical Analysis: Falling Wedge and RSI

HYPE’s price action is forming a falling wedge pattern, which is often associated with a potential reversal. The token is consolidating near the $15.00 support level, a critical point where it may either rebound or break down. Historically, falling wedge patterns can signal bullish reversals, particularly when the price nears the lower boundary of the pattern. If HYPE manages to hold above $15.00, it could see a bounce back toward the $16.50 resistance level.

However, the risk of a breakdown remains significant. If the price fails to hold at this critical support, it could drop further toward the next key support level at $14.50, indicating a deeper correction. Traders are closely watching how HYPE responds to the $15.00 support zone, as it will likely determine the next course of action.

Additionally, the Relative Strength Index (RSI) is hovering at 39.67, signaling that HYPE is approaching oversold conditions. When an asset becomes oversold, it often experiences a price bounce as buyers step in to capitalize on the lower price. However, the RSI has not yet reached the critical 30 mark, indicating that the bearish momentum is not fully exhausted, and the risk of further declines remains.

Liquidation Clusters and Bearish Sentiment

The liquidation heatmap for HYPE shows clusters of liquidations forming around the $15.00 mark. This area is particularly important for traders holding leveraged positions, as a breakdown below this level could trigger a wave of liquidations, which would drive the price even lower. If the support holds, it could signal that buyers are stepping in to defend this critical level, which may provide a floor for the price and prevent further downside.

However, the market sentiment is currently overwhelmingly bearish. The Weighted Sentiment for HYPE is -0.91, reflecting a predominantly negative outlook among traders. This negative sentiment aligns with the ongoing downward pressure in the market, as many traders remain cautious, fearing further declines.

Conclusion: Key Levels to Watch

In conclusion, Hyperliquid (HYPE) is at a crucial juncture. Despite the whale’s significant purchase, the price is struggling to maintain its position above the $15.00 support level. With bearish sentiment prevailing and technical indicators suggesting the potential for further downside, the risk of a deeper correction remains high. If the price fails to rebound quickly from this level, further declines could be on the horizon.

For traders and investors, the next few days will be critical in determining whether HYPE can hold its ground at $15.00 and trigger a rebound, or if the market will push it lower, potentially testing new support levels. Monitoring the liquidation heatmap, RSI, and broader market sentiment will be key to gauging the asset’s next move.