Hyperliquid (HYPE), a cryptocurrency, is currently trading close to $24. This marks a big fall—more than 60%—from its highest value ever. In just the last 24 hours, the token’s price has fallen by over 10%. Over the past week, it has dropped nearly 13%. Right now, the market for HYPE does not show a lot of strength. It could drop even further unless more people start buying the token soon.
Looking at the numbers, the total trading volume for HYPE in the past 24 hours is more than $550 million. The total market value of all HYPE tokens (its “market cap”) is about $6.6 billion. Among all cryptocurrencies, HYPE ranks as the 25th largest by value.
Price Drops Below Key Support Levels
The value of HYPE against USDT (a cryptocurrency linked to the U.S. dollar) has fallen below an important price support line. Think of this support line as a “floor” that holds prices up during a downward trend. For months, this floor managed to stop the price from falling further, but this support is now broken. Analyst Duo Nine has reviewed the situation and found that the price movement shows a very “bearish pattern.” A bearish pattern means the prices are expected to go even lower. According to Duo Nine, the price may soon drop to $22.
The token’s price is now lower than the 50% Fibonacci retracement level of $26. This retracement level is a point where prices often bounce back in the market. You can learn more about Fibonacci retracement here: Fibonacci retracement – Wikipedia. Unfortunately for buyers, this $26 level has now become a “resistance.” In simple terms, resistance means it’s now harder for the price to rise above $26 without significant buying activity. For now, there’s no strong sign that buyers are acting to reverse the downward trend.
In addition, indicators on the weekly price chart show more negative momentum. One important indicator used by traders is called the MACD (Moving Average Convergence Divergence). This tool helps traders see the direction and strength of a trend. Right now, the MACD shows a wide gap between two lines (called MACD and the signal line, with values of -1.78 and 1.12). Red bars on another part of the chart—the histogram—are getting bigger, which means the downward momentum is increasing. You can learn more about MACD here: MACD – Wikipedia.
Traders also look at another indicator called the RSI (Relative Strength Index), which shows whether an asset is overbought or oversold. Right now, the RSI value is 37. This low value means few buyers are currently interested in HYPE. If the RSI drops below 30, it would signal an “oversold” condition, where the price might start bouncing back. Learn more about the RSI here: Relative Strength Index – Wikipedia. However, there’s no clear indication that the price will recover soon.
Big Buyers and Token Supply Changes
Despite the falling prices, some large buyers, known as “whales,” are showing interest in HYPE. Whales are individuals or organizations who hold large amounts of cryptocurrency. On-chain data (information recorded on the blockchain network) reveals that three big buyers together deposited $37 million of USDC, a stablecoin tied to the U.S. dollar, into the Hyperliquid network. They placed large buy orders to purchase HYPE tokens at prices between $15 and $25.6. For example, one whale now owns HYPE tokens worth over $22.4 million.
At the same time, the Hyper Foundation—the organization behind this project—is planning to reduce the supply of HYPE tokens by burning 37 million tokens, which is about 10% of all tokens circulating in the market. “Token burning” means destroying a portion of the tokens so they can no longer be used or traded. By reducing the supply of tokens, the price may eventually increase, assuming demand remains steady or grows.
However, not all supply news is positive. Ali Martinez, another crypto analyst, reports that 10 million additional HYPE tokens will be unlocked this month. This adds to the 10 million tokens that were unlocked in November. Token unlocking refers to the release of tokens that were previously locked or restricted from trading. Adding more tokens to the market increases supply, which could push prices down further unless demand rises.
Lastly, there’s a new investment fund linked to Hyperliquid called “Hyperliquid Strategies.” Trading under the ticker $PURR, this fund started operations in early December. The fund is a treasury reserve for the Hyperliquid project, meaning it holds assets to back up or fund operations. As of now, the fund holds 12.6 million HYPE tokens and more than $300 million in cash.
The situation around Hyperliquid (HYPE) is fast-changing, with some signs of big investors buying in and potential changes to the token supply. However, the falling prices and lack of strong buying activity make its future unclear for now.