HYPE Price Downtrend Deepens As Funding Rate Collapses To 6-Month Low

Hyperliquid (HYPE) continues to face strong selling pressure as its price trend remains firmly bearish. The altcoin has struggled to regain momentum following last week’s market correction. 

A growing bearish sentiment in the Futures market is amplifying the decline, with traders actively betting against a price recovery.

Hyperliquid Traders Are Bearish

The funding rate for Hyperliquid has dropped to a six-month low, signaling a sharp rise in bearish sentiment. The funding rate measures the balance between long and short positions in the Futures market. A negative funding rate indicates that short contracts dominate — a scenario now clearly visible with HYPE.

This trend suggests that Futures traders are expecting the token’s value to fall further and are positioning themselves to profit from the decline. The sustained dominance of shorts over longs highlights a lack of confidence in a near-term recovery.

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HYPE Open Interest. Source: Coinglass

On the macro level, the Moving Average Convergence Divergence (MACD) indicator recently showed potential signs of a bullish crossover. However, the signal failed to materialize as selling momentum intensified, pushing the indicator deeper into the negative territory.

The increasing divergence between the MACD lines suggests further downside ahead. Unless momentum shifts meaningfully in favor of buyers, Hyperliquid may continue to struggle. The altcoin’s declining volume also supports this outlook.

HYPE MACD. Source:  TradingView

HYPE Price Downtrend Strengthens

HYPE is trading at $38.8 at the time of writing, just below the critical $38.9 support level. The current downtrend suggests the potential for another leg lower in the near term.

In the short-term timeframe, HYPE could drop toward the $36.7 support level. Losing this line of defense may trigger additional selling, pushing prices further down to $35.7 if bearish sentiment persists among investors.

HYPE Price Analysis. Source:  TradingView

Conversely, if HYPE manages to hold above $38.9 and attract renewed buying activity, it could rise past $40.2 and challenge the downtrend. A decisive breakout above $43.5 would invalidate the bearish thesis and potentially signal a trend reversal.