$2.8M Short Squeeze Looms, But HYPE’s Upside Could Remain Limited - Crypto Economy

TLDR:

• If HYPE reaches $35, approximately $2.81 million in short positions will be liquidated.
• The Chaikin Money Flow (CMF) indicator shows a clear dominance of capital outflows over inflows.
• The asset is trapped in a symmetrical triangle, defining its immediate future between $28 and $33.

Hyperliquid is at a technical crossroads, keeping investors on high alert. An imminent HYPE short squeeze of 2.8 million dollars could be triggered if the price manages to break the $35 barrier, forcing sellers to cover their positions and driving a bullish rally.

It is worth noting that this optimistic scenario depends on the buyers’ ability to generate high volume. Currently, bearish sentiment dominates, raising doubts about whether the token will have the push it needs to invalidate the current consolidation structure.

Despite the magnitude of potential liquidations, money flow indicators suggest that buying interest is vanishing. The Chaikin Money Flow indicator fell below the zero line, confirming that capital outflows are outpacing fresh investments at this time.


Critical Technical Levels and Downside Risks

From a technical standpoint, HYPE is trading around $30 within a symmetrical triangle pattern. If the asset fails to decisively overcome the $33 resistance, the risk of a correction toward the $28 support level—marked by the 61.8% Fibonacci retracement—will increase considerably.

Should selling pressure intensify and the psychological support at $30 is lost, the price could rapidly drop to $25 or even $20. This dynamic reinforces the importance of monitoring whether market sentiment shifts before massive liquidation levels are reached.

Conversely, a positive change in investor confidence that manages to drive the price above $33 would invalidate the bearish thesis. Only under these conditions would the market see the unfolding of the expected upward movement that so concerns short-positioned traders.