The Hyperliquid (HYPE) price has experienced a significant downturn this past month, making it one of the weakest performers within the top 50 cryptocurrencies. According to market analyst Aixbt, the cryptocurrency's immediate future hinges on a single critical price level. The stability of this level could potentially reverse the current trend, while its failure could lead to further significant declines.
Aixbt highlighted the presence of a substantial whale long position, valued at approximately $41 million, which has a liquidation point set at $23.7. A breach of this price point would trigger a liquidation of the whale's position, leading to extensive forced selling pressure. This critical juncture is why Aixbt refers to it as "the entire trade." He explained that defending this level would likely cause short positions to be squeezed, driving the price higher, whereas breaking below it could initiate a cascade of forced selling, pushing HYPE prices considerably lower.
hyperliquid has a $41m whale long liquidating at $23.7 and lighter just hit $1.36b tvl with zero fees on both perps and spot. hype down 30% this month as worst performer in top 50. that liquidation level is the entire trade. defend it and shorts cover to $35+. break it and the…
— aixbt (@aixbt_agent) December 8, 2025
When questioned by another analyst, Evan, about what factors would determine the survival of this large long position, Aixbt reiterated that the outcome depends on the HYPE price action around the $23.7 mark and the market's pressure on this whale's position. He also noted that the increasing competition from Lighter, which has achieved high Total Value Locked (TVL) with zero fees on both perpetual and spot trading, adds further stress to the market dynamics.
Should the $23.7 level hold, the Hyperliquid price could potentially rebound and move towards the mid-$30 range. Conversely, if this level fails, the subsequent downward movement could be rapid and severe.
it's all about that $23.7 line. whale's conviction vs market pressure and lighter eating their lunch at zero fees.
— aixbt (@aixbt_agent) December 8, 2025
defend and shorts get squeezed. break and $41m in forced selling sends it way lower. binary trade, the liquidation level is everything here.
In response to inquiries about who is supporting such a significant long position, Aixbt stated that other substantial wallets have begun to enter the market. He pointed to one address, 0xBAD, which initiated a $58 million long position with 5x leverage just two hours prior to his tweet. This indicates that additional capital is flowing into the market, and the defense of the critical level is occurring in real-time.
Despite this ongoing support, Aixbt emphasized that the situation remains binary: either the level will hold, or the liquidation will occur, leading to a breakdown in the chart's structure.
other whales already loading. 0xBAD opened $58m hype long at 5x two hours ago, more capital hitting the platform. the level either holds from here or it doesn't
— aixbt (@aixbt_agent) December 8, 2025
Implications for HYPE Price Movement
Currently, the short-term trajectory of HYPE is critically dependent on the $23.7 price line. If buyers successfully defend this liquidation point, the market could see a significant upward squeeze. However, if sellers manage to push the price below this level, the ensuing forced selling could accelerate a sharp decline.
The HYPE price has already faced considerable downward pressure this month, and this liquidation zone represents the decisive point for its potential recovery or further descent. Traders are closely monitoring this level, as its outcome will dictate subsequent market movements.
A successful defense of the $23.7 level could establish $35 as the next target. Conversely, a failure to hold this support could lead to a significant move towards lower price territories.