- Hyperliquid (HYPE) faces key resistance at $15.50 but could rally to $18 if momentum builds.
- Recent DEX liquidation led to a $4M loss, prompting new margin rules and shifting market sentiment.
Hyperliquid (HYPE) is trading at $14.42, rebounding from a volatile week after heavy liquidations rocked its decentralized exchange. On March 12, a trader using 50x leverage triggered an automatic sell-off, wiping out over $4 million from the liquidity pool. The fallout forced Hyperliquid to raise margin requirements to 20%, effective March 15, to curb future risks. Despite this turbulence, HYPE remains resilient, with investors closely watching key resistance at $15.50.
The token’s market capitalization stands at $4.82 billion, with a circulating supply of 333.93 million HYPE. While it once peaked at $35.01 in December 2024, the current price is nearly 59% below that all-time high. Traders now weigh whether the token can regain lost ground or face further downside.
Market Sentiment and Recent Developments
The sudden liquidation event has left traders cautious. While the higher margin requirements aim to stabilize the platform, some fear they could reduce trading activity. However, analysts point to Hyperliquid’s strong liquidity structure, which helps minimize slippage even in volatile conditions.
Broader crypto trends may also support HYPE’s recovery. Decentralized trading platforms are gaining traction, and Hyperliquid’s innovative features position it well for future growth. If sentiment shifts in favor of DeFi tokens, HYPE could benefit from renewed buying pressure.
Technical Indicators And Analysis
HYPE is currently consolidating, with the 50-day moving average at $14.50- $18.00 acting as resistance. Bulls must break above $15.00 for sustainable momentum. Hype’s Relative Strength Index (RSI) sits near 50 which means a neutral sentiment, and the MACD suggests a potential bullish hope.
Support at $13.50 remains critical at the moment, because a drop below the support level might lead to an immediate price decline towards $12.00. Also, crossing the resistance level at $15.50 could open a rally towards $18.00. If bulls regain their control, $20.00 could be the next major target and a possible trend reversal.
Analysts remain cautiously optimistic about HYPE’s current movement. Analysts have predicted a potential rise of $48.50-$50 for HYPE by the end of 2025, driven by strong adoption and DeFi expansion.
However, regulatory risks and platform-specific challenges could impact future performance. For now, traders remain focused on the key $15.50 resistance level.
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