Hyperliquid's HYPE token is stirring up buzz with signs pointing towards a potential short squeeze. Are the bears about to get burned?
Hyperliquid HYPE: Short Squeeze Incoming?
The crypto markets are buzzing about Hyperliquid's HYPE token, and for good reason: a potential short squeeze is brewing. But is this just hype, or is there real fire behind the smoke?
Shorts Beware: HYPE Primed for a Pop?
Recent data suggests HYPE is bucking market trends. While other assets saw long liquidations pile up, HYPE stood out with short liquidations exceeding longs. This skewed positioning is like waving a red flag in front of the bulls, signaling a possible short squeeze.
Analyst Stacy Muur suggests that if HYPE's momentum continues, these growing short positions could become fuel for a forced exit, launching a squeeze that sends prices soaring. It's like a coiled spring, ready to release its energy upwards.
Community Eyes $50: Is It Just Wishful Thinking?
The HYPE community is already talking about hitting $50. Following the liquidation imbalance, the price has shown signs of strength, potentially setting up a slingshot move upward as shorts get squeezed. Analyst Gianluca highlights this growing momentum.
Technicals Align: $40 in Sight?
HYPE is showing signs of stabilization, reclaiming the $34-$36 support zone. This area acted as a significant pivot in the past, and holding it again gives bulls a solid foundation to build on. A break above lower highs could trigger a breakout scenario, targeting the mid-$40s or even higher. As sentiment shifts, consolidation at support can act as fuel, especially if overexposed shorts begin to panic.
$70 on the Horizon? Fibonacci Says Maybe
After bouncing off the $33 support, HYPE is forming a textbook retracement-and-continuation pattern. Reclaiming the 0.786 Fibonacci level opens the door to the 1.618 Fibonacci extension near $70. The weekly chart shows a clean Elliot Wave Pattern, with consolidation after the early June highs resetting indicators and shaking out weak hands. With open interest climbing and price reclaiming key Fib levels, momentum and structure are working in tandem. If bulls hold this level, the $70-$80 range is the next logical target, according to 0xDefioor.
Hyperliquid Fund's Whale Moves
Adding fuel to the fire, Hyperliquid's Assistance Fund has been steadily accumulating HYPE tokens, adding another $2.1 million worth recently. This ongoing support from the network provides underlying strength to the price, suggesting they're playing the long game.
Final Thoughts: Squeeze or No Squeeze?
HYPE is displaying telltale signs that the tide may be turning in favor of the bulls. Growing short exposure combined with consistent buying from the Hyperliquid Fund creates a potent mix for a potential short squeeze, which could send prices sharply higher. The key is whether HYPE can maintain support around the mid-$30s and break through resistance in the $40-$50 range. If it does, a faster move toward $70 and beyond could be in the cards.
So, is HYPE destined for a squeeze? Only time will tell. But one thing's for sure: it's a situation worth watching closely. Grab your popcorn, folks, because this could get interesting!
