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Hyperliquid (HYPE) has dipped by over 9.3% in the last 24 hours. Bullish traders who were betting on a quick recovery have been stunned as HYPE suffered a 19,420% liquidation on its hourly chart. This development is not restricted to Hyperliquid, as most assets are also in the red.
CoinGlass data indicate that long-position traders lost $1,300,000 in the last hour following a decline in price.
The sharp drop caused a staggering liquidation for Hyperliquid as traders were betting on a recovery.
However, the broader market appears to have weighed heavily on HYPE’s performance.
Notably, Bitcoin’s repeated failure to stabilize above the $90,000 level has impacted the crypto market. The total crypto market dropped by 0.48%, with altcoins underperforming Bitcoin.
As of press time, Hyperliquid changed hands at $24.43, which represents a 9.89% decline in the last 24 hours.
HYPE fell from an intraday high of $27.79 to a low of $23.79 before climbing slightly to the current level.
Despite the decline, trading volume is still in the green and up by 46.49% at $534.33 million.
Meanwhile, Hyperliquid’s Relative Strength Index (RSI) is approaching the oversold zone as it stands at 28.93. Market watchers are now monitoring the $24 price, which is a crucial support for the asset.
It is worth mentioning that short-position traders were not spared from the liquidation. Bears experienced a loss of $6,660 within the same one-hour period. This might have been triggered by HYPE breaching the $24 support temporarily before it recovered.
In the broader Hyperliquid space, Bitwise Asset Management is going ahead with its push for an exchange-traded fund (ETF) application.
It has already submitted an amendment filing with the U.S. Securities and Exchange Commission (SEC), with plans to list on the NYSE and the Nasdaq.
The Bitwise filing will allow investors access to HYPE without directly holding the asset. If the SEC approves the application, this might increase the adoption of Hyperliquid and positively impact the price.
The Hyperliquid ecosystem had experienced challenges in November that made it pause withdrawals.
However, it allowed users to make deposits as they monitored a suspected hack on the network. The Bitwise application could serve to rekindle interest from investors.
