The HYPE price could surge despite the upcoming $2.8 million short squeeze.

Hyperliquid (HYPE) has recently experienced relatively stagnant price movements, fluctuating around the $30 mark. The formation of an symmetrical triangle pattern indicates that HYPE is in an accumulation phase and could break out in either direction. However, market sentiment is currently cautious, making the short-term outlook for this token unpredictable.

Risks of a Short Squeeze May Occur

HYPE is facing the potential for a short squeeze, which could significantly boost the price. Data from the liquidation map shows approximately $2.81 million in short positions could be liquidated if the price exceeds $35. In that case, short positions would be forced to close, adding buying pressure and rapidly driving the price higher.

HYPE Liquidation Heatmap | Source: CoinglassHowever, this positive scenario can only happen if there is enough buying demand in the market. If investor interest does not increase, HYPE is likely to continue fluctuating within the current range rather than breaking out. Investor confidence thus plays a crucial role in shaping the next trend.

Market Capital Flows Are Weakening

From a technical perspective, HYPE’s market momentum is showing less positive signals. The Chaikin Money Flow (CMF) indicator has fallen below zero, reflecting that outflows are currently outweighing inflows.

This trend indicates that demand for HYPE is weakening and reflects increasing caution among investors. When price volatility is not supported by strong cash flow, the short-term growth prospects for this token face significant challenges.

HYPE CMF Indicator | Source: TradingView## Breakout Potential Remains Uncertain

Currently, HYPE is trading around $30 within the symmetrical triangle pattern. If the price cannot break above the $33 resistance zone and sustain upward momentum, there is a considerable risk of dropping below $30.

In a negative scenario, losing the $30 level could pull the price down to the key support zone at $28, corresponding to the 61.8% Fibonacci level. If selling pressure continues to increase and this support is broken, HYPE could retreat further to $25, or even $20.

HYPE Price Analysis | Source: TradingViewConversely, if market sentiment improves and buying interest returns, surpassing $33 could open the way for HYPE to reach $36. This could trigger a short squeeze, reversing the bearish outlook and providing momentum for a recovery of this token.