The price of Hyperliquid faces the risk of falling deep below $30 as the bears dominate.

Hyperliquid (HYPE) continues to sink in the red, currently hovering around the $37.50 mark on Wednesday, after failing to break through the important resistance level earlier in the week. Selling pressure is increasingly mounting, reinforced by signals from on-chain data and the derivatives market – indicating that HYPE is entering a phase where the bears are clearly prevailing.

Notably, the number of short positions (Short) has surged to its highest level in a month. Technical analysis also paints a gloomy picture, as the current price model opens up the possibility of further deep corrections, with the target area potentially retreating below the $30 mark.

Hyperliquid's on-chain and derive indicators turn negative

Data from CryptoQuant shows that sell pressure on Hyperliquid (HYPE) is increasing significantly. The Spot Taker CVD (Cumulative Volume Delta) – which measures the cumulative difference between buying and selling volume over a three-month period – is currently in negative territory and continues to decline since mid-July. This trend clearly reflects a shift from a dominant buying phase to an overwhelming selling phase, signaling a growing pessimistic sentiment across the market.

Spot Taker CVD chart of HYPE | Source: CryptoQuantNot only limited to spot data, indicators from the futures market also show that the speculative wave is increasing. The number of opened leveraged positions continuously increases, while the Spot Taker CVD indicator remains negative – a sign that the possibility of a short-term downward adjustment is present.

The negative sentiment was further reinforced as the long/short ratio recorded by Coinglass only reached 0.77 on Wednesday – the lowest level in over a month. A ratio below 1 indicates that the majority of traders are betting on the scenario that HYPE prices will continue to decline, increasing selling pressure across the market.

Long/Short ratio chart HYPE | Source: CoinGlass## Hyperliquid price forecast: Bears targeting below $30

The price of Hyperliquid (HYPE) has officially broken the upward trendline – formed by connecting the lows since early April – last Thursday. After this breakout, the price plunged 10.34% and consecutively closed below the important support level of $38.87 in the following two days.

From Sunday to Monday, HYPE recorded a slight recovery but quickly failed as it could not surpass the resistance level of $38.87. The weakening momentum returned shortly after, pulling the price to continue a slight adjustment the following day. As of the time of writing ( Wednesday ), HYPE is still fluctuating in the red around the level of $37.64.

If the downward trend continues, HYPE is likely to revisit the Fibonacci retracement level of 61.80% at $34.40 ( determined from the April low at $9.32 to the historical peak in July at $49,88). A break of this level could open up a deeper decline, with the next target being the weekly support area at $27.49.

HYPE/USDT daily chart | Source: TradingViewTechnically, the RSI index on the daily frame is currently at 39 – below the neutral level of 50 – clearly reflecting the prevailing downtrend. At the same time, the MACD indicator also created a bearish crossover on July 23 and is still maintaining a negative signal, further reinforcing the downward outlook.

However, if HYPE can regain momentum and close above the threshold of $38.87, the recovery trend may be reactivated, steering the price towards the nearest peak set on July 31 at $44.70.

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