The price of #Hyperliquid ’s native token, $HYPE , has fallen nearly 20% from its recent peak, slipping below the key $38 support level. This decline follows a sharp rally from $17 to $45, which now appears to have met significant resistance amid increased selling pressure and muted investor reaction to recent treasury developments.
🔻 Market Reaction: Profit-Taking Overrides Optimism
Despite an explosive rally of over 170%, HYPE's upward momentum has stalled. After reaching a high near $45, the token encountered strong resistance, triggering a wave of profit-taking. A 7% daily decline has been recorded, indicating a shift in sentiment as traders lock in gains rather than initiate new positions.
Technical indicators suggest that $38.13 represents a key short-term support level. A confirmed breakdown below this threshold could open the door to further losses, potentially targeting the $27–$31 range. Momentum has slowed significantly, with traders appearing cautious and sidelined as selling pressure mounts.
📰 Treasury Announcements Disappoint
Two high-profile announcements were expected to bolster HYPE’s bullish case but ultimately fell short:
Eyenovia, a Nasdaq-listed biotech firm, revealed the addition of $50 million worth of HYPE to its treasury—the first such move by a U.S. public company.
Lion Group followed with news of a $600 million credit facility, allocating part of it toward HYPE reserves. Custody will be managed by BitGo, signaling institutional-level infrastructure.
Despite the significance of these developments on paper, the market response was subdued. Traders may have been looking for clearer signals of adoption, utility, or timing alignment. In the absence of immediate impact, sentiment remained largely neutral.
📉 What's Next for #HYPE ?
While Hyperliquid continues to dominate decentralized exchange gas revenue—briefly surpassing even Ethereum and Solana—and large transactions (including billion-dollar BTC orders by James Wynn) have supported demand, enthusiasm appears to have waned in the short term.
The $38 support zone will be critical in determining the next move. A successful defense could lead to a rebound and a potential return of bullish sentiment. However, if sellers maintain control, a slide toward the $30 level is increasingly likely.
📈 Conclusion
The recent correction does not negate the broader uptrend, but it introduces caution. Traders are now waiting for stronger momentum, clearer signals from institutions, or renewed demand before re-entering the market. Whether HYPE consolidates for another leg up—or continues correcting—will likely hinge on its ability to hold above $38 and translate announcements into tangible growth drivers.
