The native token of Hyperliquid, $HYPE , has seen a notable retreat, shedding nearly 20% from its recent peak and falling below the critical $38 support level. The decline follows a sharp rally that took the token from $17 to $45, a move that now appears to have run into substantial resistance, as profit-taking accelerates and investor sentiment turns cautious in the wake of underwhelming treasury-related news.



🔻 Market Reaction: Profit-Taking Diminishes Upward Momentum


Despite a significant rally of over 170%, bullish momentum in HYPE has stalled. The token's climb to a high near $45 was met with intensified selling pressure, prompting a wave of profit-taking. A daily loss of approximately 7% highlights this shift in sentiment, with many traders opting to secure gains rather than initiate new long positions.


Technical analysis identifies $38.13 as a key short-term support level. A sustained breakdown below this threshold could open the door to further downside, with the next likely support zone in the $27–$31 range. Momentum indicators reflect growing uncertainty, with many participants moving to the sidelines as volatility rises.



📰 Treasury Announcements Fail to Ignite Demand


Recent strategic announcements—originally expected to reinforce the bullish case for HYPE—fell short of market expectations:



  • Eyenovia, a Nasdaq-listed biotech company, disclosed the addition of $50 million in HYPE to its treasury, marking the first instance of a U.S. public company integrating HYPE as a reserve asset.


  • Lion Group followed with the establishment of a $600 million credit facility, allocating a portion toward HYPE holdings. Custodianship will be handled by BitGo, signaling the introduction of institutional-grade infrastructure.


Despite the potential long-term implications of these developments, immediate market response was muted. Investors appeared to seek clearer timelines, stronger use cases, or evidence of direct utility. Without those, sentiment remained cautious.



📉 Outlook: Critical Levels Ahead


Hyperliquid remains a major player in the decentralized finance space, recently surpassing both Ethereum and Solana in gas revenue. Additionally, large-scale transactions—such as billion-dollar BTC orders attributed to investor James Wynn—have previously driven demand.


However, enthusiasm has cooled in the short term. The $38 support level now represents a key technical threshold. A successful hold could set the stage for a rebound and renewed bullish interest. Conversely, a decisive breakdown could lead to a decline toward the $30 level and possibly lower.



📈 Conclusion


The recent price correction does not negate the broader bullish trend but introduces a period of consolidation and caution. Market participants are likely to wait for renewed momentum, clearer signals from institutional actors, or demonstrable adoption before re-engaging aggressively. In the near term, the token's ability to defend $38 and turn high-profile announcements into measurable growth will be pivotal in determining its next move.


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