Hyperliquid hit by market downturn, bullish liquidations set astonishing records

Hyperliquid (HYPE) has suffered relentless market attacks in a short period. According to the latest data, the current price of the token is $23.86, down 2.90% in the past 24 hours. However, what truly shocks traders is the 19,420% liquidation imbalance rate observed in the past hour — an astonishing figure reflecting a severe situation for long positions.

Longs Suffer Heavy Losses, Wave of Liquidations Continues

CoinGlass data shows that as the price declined, long traders lost up to $1,300,000 within an hour. This aggressive drop hit investors betting on a quick rebound, and the worsening market environment intensified this pain.

Notably, Bitcoin repeatedly attempted to hold the critical $90,000 level but failed to stabilize, with the overall cryptocurrency market cap decreasing by 0.48%, and altcoins performing even worse. In this market environment, HYPE dropped from an intraday high of $27.79 to a low of $23.63 before experiencing a slight rebound.

Interestingly, short traders also did not escape unscathed during the same period, incurring losses of $6,660. This may be due to HYPE briefly breaking below the $24 support level and then rebounding, indicating that market sentiment has become extremely unstable.

Technical Indicators Signal Warning Signs

Hyperliquid’s Relative Strength Index (RSI) is approaching oversold territory, currently at 28.93. Market observers are closely watching whether the critical support level of $24 can hold. Meanwhile, trading volume has increased by 46.49% to $534 million, indicating heightened market volatility.

Bitwise ETF Application Brings Hope to the Market

Amidst the bearish atmosphere, some good news offers a glimmer of hope for Hyperliquid. Bitwise Asset Management has submitted a revised application to the U.S. Securities and Exchange Commission (SEC) to list an HYPE exchange-traded fund (ETF) on NYSE and Nasdaq.

If the SEC approves this application, investors will be able to participate in this asset without directly holding HYPE, which will undoubtedly significantly boost Hyperliquid’s adoption. Considering that the Hyperliquid ecosystem temporarily suspended withdrawals last November due to a security incident, but has now resumed normal operations, Bitwise’s ETF plan is expected to rekindle market interest in this trading platform and serve as a catalyst for subsequent price rebounds.