The price of Hyperliquid (HYPE) has slipped once again after failing to maintain its position above a crucial resistance area, leading to fears that a bearish double top formation is taking shape on the daily chart. At the time of writing on May 13, HYPE was trading near $39.2, down from a brief push above $44 earlier in the month. Despite this pullback, the token still holds a notable premium above the April lows around $35.
Market data shows that whale exposure on Hyperliquid has ballooned to approximately $4.236 billion, with long and short positions nearly balanced at a ratio of 0.98. Long positions account for about $2.099 billion, while shorts are slightly higher at $2.137 billion. This near-neutral stance suggests that large traders are uncertain about the near-term direction, even amid heightened volatility across the crypto space.
On the positive side, investor enthusiasm around the Hyperliquid ecosystem has remained robust following the launch of the first U.S.-listed exchange-traded funds for HYPE by 21Shares. These products include a spot ETF with staking features and a leveraged fund tied to the decentralized derivatives platform. The ETF launch has further cemented Hyperliquid’s institutional credibility, given its dominant role in decentralized perpetual futures trading, processing billions in daily volume and capturing a substantial share of open interest.
However, profit-taking appears to be underway after HYPE repeatedly failed to breach the $44–$45 resistance zone over the past several weeks. The daily chart reveals a potential bearish double top pattern, with two prominent peaks formed near that resistance area. Typically, such a pattern signals waning bullish momentum and often precedes a significant decline if the neckline support is broken.
The neckline of this pattern sits around $35.2, which aligns with a key horizontal support zone that buyers defended vigorously during April’s consolidation. The MACD indicator reinforces the bearish view: the histogram has turned negative again, and the MACD line has slipped below the signal line, confirming a bearish crossover that points to mounting downside pressure in the near term. Additionally, the Aroon indicator shows diminishing bullish strength, with the Aroon Up dropping toward 50% while Aroon Down remains subdued near 7%, indicating that buyers are losing control without a full bearish shift yet.
Should sellers push HYPE below the neckline near $35, the double top setup could trigger a deeper pullback toward the $31–$32 region. Conversely, bulls would need to reclaim the $44 resistance to invalidate the bearish pattern and reignite momentum toward the $50 psychological level.
This article does not provide financial advice; it is for educational purposes only.