HYPE Price Upside May Struggle Despite $2.8 Million Short Squeeze Ahead

Hyperliquid (HYPE) has faced significant price stagnation recently, with its value hovering around $30. The formation of a symmetrical triangle pattern suggests that HYPE could move in either direction. However, the current market sentiment points toward a bearish outlook, leaving many investors uncertain about the token’s short-term future. Short HYPE Traders Have a Lot To Lose HYPE is potentially facing a short squeeze, which could act as a catalyst for the price to rise. The liquidation heatmap reveals that approximately $2.81 million worth of short contracts will be liquidated if the HYPE price crosses the $35 mark. Short squeezes often drive price surges as bearish sentiment wanes and short positions are forced to close. However, this bullish scenario can only play out if HYPE holders show strong support for a price increase. Without sufficient buying interest, the short squeeze could remain an unrealized opportunity, leaving HYPE’s price movement stuck within its current range. The key to a potential breakout lies in investor confidence and their willingness to push prices higher. Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here. HYPE Liquidation Heatmap. Source; Coinglass The broader market momentum for HYPE is not as favorable. The Chaikin Money Flow (CMF) indicator shows that HYPE is currently dominated by outflows. As the CMF falls below the zero line, it indicates that inflows are dissipating and outflows are taking over. This signals a shift in investor sentiment, with more participants losing confidence in HYPE’s potential. The negative CMF reading highlights that the recent price action is not supported by strong demand. Instead, investors seem to be pulling away from the asset, which reinforces the bearish short-term outlook for HYPE. The current outflow trend suggests that the token may struggle to recover unless there is a significant shift in investor sentiment. HYPE CMF. Source: TradingView HY...