HYPE news live: $10B liquidation cascade aftermath keeps asset under pressure despite daily rise

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Hyperliquid surges 8.58% today

Highlights

Hyperliquid (HYPE) trades at $39.47, up 8.58% daily, but remains below MA-20 ($45.06) and MA-50 ($47.94), signaling persistent short- and medium-term bearish pressure.
A $10 billion liquidation cascade in mid-October triggered trading disruptions and steep forced losses for long traders, with Hyperliquid's auto-deleveraging mechanism actively used amid high leverage and low liquidity.
Technical indicators show established downtrend with oversold conditions (RSI: 36.06, ADX: 34.64), suggesting HYPE consolidates between $42.66 and $43.09 over five days with no strong directional bias.

Forced liquidations and leverage exacerbate market upheaval for HYPE

HYPE faced a significant disruption following a $10 billion liquidation cascade during a severe market downturn in mid-October, which caused major order book stress and severe trading disruptions. This event was aggravated by high leverage, low liquidity, and external economic factors that accelerated margin calls and forced sales. Hyperliquid's auto-deleveraging mechanism was actively triggered to restore stability, although it led to steep losses for long traders.

Mixed momentum signals as major supports face established downtrend

Technically, HYPE is pressured below the key short- and medium-term moving averages (MA-20 and MA-50) but is holding above the MA-200, which provides potential longer-term support. Immediate dynamic resistance is noted at the Kijun ($40.19) and MA-50 ($47.94), while MA-200 ($36.17) is a vital support level. Momentum is mixed: the MACD remains negative, and a robust ADX at 34.64 signals an established downtrend, but the RSI (36.06), Stoch RSI (11.69), and CCI (−145.78) all point to oversold conditions, suggesting that downside pressure could be exhausting. Intraday, oscillators lean slightly bearish, though a mild bullish flip in the Awesome Oscillator signals risk of a reversal if buying interest resumes.

Neutral outlook prevails amid tight range and balanced directional odds

Over the next five trading days, HYPE is likely to remain in a consolidation phase, with a projected range between $42.66 and $43.09 and an average near $42.87. The probability is evenly split between price increase and decline (50% each), indicating a lack of a strong directional bias in the short term. For bullish momentum to reestablish, HYPE would need to break above $40.19, targeting $42.66 to $43.09; persistent weakness below $39.30 would expose a risk of test toward the MA-200 support at $36.17.

Anton Kharitonov, expert at Traders Union, sees Hyperliquid (HYPE) still burdened by recent market turmoil, with technicals reflecting ongoing bearish momentum despite some longer-term support above $36.17. The analyst notes that mixed momentum signals and oversold oscillators suggest the current downtrend may be entering a pause, but any recovery hinges on regaining key resistance at $40.19. He remains cautious in the short term, emphasizing that both the price structure and sentiment remain fragile after last month's $10 billion liquidation cascade. "Until HYPE decisively reclaims $40.19, I see no compelling risk-reward for longs—sideways or further downside remains my base case."

Last time we reported that Hyperliquid faced mixed momentum signals and key support boundaries heightened trend uncertainty, as discussed in the article mixed momentum signals and key support boundaries. Additionally, it was noted that MetaMask introduced perpetual futures trading in its mobile application with leveraged trading and support for multiple tokens.

Source of Data: HYPE Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.