Hyperliquid Forms Bearish Double Top: Is a Slide to $35 Around the Corner?

On Tuesday, the price of Hyperliquid continued its downward trajectory, failing to sustain levels above a significant resistance threshold, raising concerns about a potential bearish double top pattern forming on the daily chart.

As per data from crypto.news, Hyperliquid (HYPE) experienced a decline to about $39.2 as of May 13, having briefly traded above $44 earlier this month. Despite this recent drop, the token remains significantly above its April lows near the $35 mark.

The most recent adjustments coincide with whale positioning on Hyperliquid reaching approximately $4.236 billion in total exposure, where major traders are displaying a notably neutral approach between bullish and bearish sentiments. Long positions accounted for about $2.099 billion, while short positions were slightly higher at approximately $2.137 billion, leading to a near-neutral long-to-short ratio of 0.98.

This positioning suggests that institutional and high-net-worth traders are uncertain about the immediate market trajectory despite the increased volatility in digital assets.

Investor sentiment surrounding the Hyperliquid ecosystem remains relatively strong, following the introduction of the first U.S.-listed exchange-traded funds linked to the HYPE token by 21Shares. These products include a spot ETF with staking exposure and a leveraged fund associated with the decentralized derivatives platform.

The ETF launch has further cemented Hyperliquid’s expanding institutional footprint, as the protocol continues to excel in decentralized perpetual futures trading. The platform presently manages a considerable share of decentralized perpetual open interest while executing billions in daily trading volume.

Nevertheless, traders seem to be increasingly taking profits as HYPE has struggled repeatedly to exceed the critical $44–$45 resistance zone in recent weeks.

Hyperliquid Price Analysis

Analyzing the daily chart, Hyperliquid appears to have established a bearish double top pattern, characterized by two notable peaks around the $44–$45 region. Typically, a double top pattern signals waning bullish momentum and often precedes a deeper correction upon the breach of the neckline support.

The neckline of this pattern is currently situated around the $35.2 support zone, coinciding with a notable horizontal support level that buyers actively defended during the consolidation phase in April.

Inspecting the MACD indicator reinforces the perspective of diminishing momentum. The MACD histogram has turned negative again, while the MACD line has crossed below the signal line, signifying a bearish crossover and implying that downward pressure may persist in the short term.

Moreover, the Aroon indicator highlights decreasing bullish momentum. The Aroon Up indicator has decreased toward the 50% mark, while the Aroon Down remains low at roughly 7%, signaling that buyers are gradually losing grip on the trend, even though broader bearish dominance has yet to fully manifest.

If sellers successfully push HYPE below the neckline support near $35, the bearish double top configuration could trigger a more significant correction towards the $31–$32 range.

Conversely, bulls would need to reclaim the $44 resistance level to nullify the bearish structure and restore momentum towards the psychological $50 level.