Selling pressure increases, Hyperliquid (HYPE) is at risk of falling sharply.

Hyperliquid (HYPE) continues its downtrend for the fifth consecutive day, currently trading below the 46 USD mark at the time of writing on Tuesday, after being rejected at a key resistance zone. Derivative data continues to bolster the case for a downtrend, as the number of short positions (shorts) has risen to its highest level in over a month. At the same time, technical signals also indicate that the risk of a correction remains present, with most momentum indicators leaning towards the bears.

HYPE derivative data shows pessimistic sentiment

According to data from Coinglass, the Long/Short ratio of HYPE is currently at 0.80 on Tuesday — the lowest in over a month. A ratio below 1 reflects the prevailing pessimistic sentiment, as the majority of traders lean towards the scenario of prices continuing to weaken.

Long/Short ratio of HYPE | Source: CoinglassIn addition, the "spot volume bubble map" from CryptoQuant also shows that trading activity in the spot market of Hyperliquid is in an overheated state. This situation raises concerns that profit-taking pressure may increase, pushing HYPE prices down further in the short term.

The "spot volume bubble map" of HYPE | Source: CryptoQuant## Hyperliquid price forecast: bears targeting the zone below 40 USD

The price of Hyperliquid (HYPE) was rejected at the rising trend line — formed by connecting the lows since early April — on Friday, then fell nearly 7% as of Monday. At the time of writing on Tuesday, HYPE is trading around 45.90 USD.

Daily HYPE/USDT chart | Source: TradingViewIf the downtrend continues, this coin may retreat to the daily support zone around 39.11 USD. The Relative Strength Index (RSI) on the daily frame is currently at 45, below the neutral threshold of 50, indicating that the bears are in control of the momentum. Additionally, a bearish cross signal (just appeared on the MACD indicator on Tuesday, further reinforcing the negative outlook for HYPE.

However, in the event of a recovery, HYPE may rise again and head towards the resistance zone of the day at 51.15 USD.

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