HYPE extended its downturn as traders shifted away from earlier bullish positioning. Market structure weakened after price failed to recover lost levels, while funding trends and open interest showed reduced conviction across derivatives platforms.
Breakdown in Structure Extends the Downtrend
HYPE continued to trade under pressure after losing major support zones. The chart showed a clear series of lower highs pressing into a descending trendline. That pattern created a clean downtrend that limited every attempt at recovery.
It was noted that HYPE was “getting crushed” as sellers controlled each bounce. The move below the $39–$41 region accelerated the breakdown once the horizontal cluster failed. Price then traded well below moving averages, which continued to slope downward.
Trading volume fell by more than 35%, pointing to fading participation. The drop in volume during the sell-off suggested restricted interest from active buyers. That shift aligned with weaker sentiment as price pushed into the lower $30 region.
Funding and Positioning Show a Heavy Long Bias
Weighted OI funding showed unstable conditions through frequent negative pockets. Those readings appeared as price weakened, indicating increased pressure from short positions. Funding stayed near neutral for long stretches, showing little reset before the decline.
Open interest declined by over 6% during the move. Reduced open interest and falling participation showed that traders stepped back from using leverage. The market moved into a controlled unwind rather than forced expansion from aggressive positioning.
Long-short ratios on exchanges such as Binance and OKX showed a heavy long skew. Top-trader ratios held above 1.5 and even reached 1.8 in some segments. That imbalance created a fragile setup during the downturn and allowed the decline to extend.
Liquidations and Price Levels Build a Bearish Outlook
Liquidation data showed long traders absorbing the broader losses. The 12-hour and 24-hour windows recorded higher long liquidations. Those numbers confirmed attempts to defend earlier support zones during the slide.
Short-interval liquidations leaned more toward shorts. That reflected volatility bursts rather than structural reversals. The broader pattern showed that long traders faced greater stress as price failed to stabilize.
HYPE, as of writing, traded at $31.49 with a daily decline of 6.22%. The weekly performance recorded an 18.53% pullback. Those numbers aligned with the broader shift in momentum as price entered deeper ranges.
Market conditions suggest buyers will need to reclaim lost levels to ease pressure. Until then, the structure remains aligned with continued caution as participation stays limited across exchanges.