The price of $HYPE
, the native token of Hyperliquid, has dropped nearly 20% from its recent highs, falling below the critical $38 support level. This correction follows an impressive surge from $17 to $45, which has now encountered stiff resistance amid rising selling pressure and lukewarm reception to recent treasury announcements.
🔻 Profit-Taking Takes the Lead as Momentum Fades
Following a 170% rally, HYPE's bullish momentum has cooled. After testing the $45 zone, the token faced strong resistance, triggering a wave of profit-taking. A 7% daily decline has been recorded, signaling a shift in market sentiment as traders opt to realize gains rather than initiate new positions.
Technical analysis points to $38.13 as a key near-term support. A decisive break below this level could lead to a deeper pullback, with downside targets between $27 and $31. Momentum indicators show weakness, with buyers appearing cautious and mostly sidelined.
📰 Treasury News Fails to Ignite Market Optimism
Two highly anticipated announcements were expected to reinforce the bullish case for HYPE—but both landed with less impact than hoped:
Eyenovia, a Nasdaq-listed biotech firm, disclosed a $50 million HYPE treasury purchase—marking the first such move by a U.S. public company.
Lion Group unveiled a $600 million credit facility, with a portion allocated to HYPE holdings, under BitGo custody to ensure institutional-grade security.
Despite their headline appeal, the market’s response was tepid. Investors appear to be seeking more immediate utility, adoption metrics, or clearer timelines, and in their absence, overall sentiment has remained neutral.
📉 What’s Next for $HYPE?
Hyperliquid continues to dominate DEX gas revenue, at one point even outpacing Ethereum and Solana. Additionally, large-scale transactions—including billion-dollar BTC trades by James Wynn—have supported underlying demand. However, short-term enthusiasm has clearly cooled.
The $38 support zone is now a crucial battleground. Holding this level could set the stage for a rebound and renewed bullish momentum. But if sellers maintain control, a move down toward the $30 region becomes increasingly likely.
📈 Final Thoughts
This pullback doesn’t invalidate the broader uptrend but signals a phase of market caution. Traders are now looking for clearer institutional signals, improved fundamentals, or stronger momentum before re-engaging. Whether HYPE stabilizes and rebounds—or continues its decline—will likely depend on its ability to hold above $38 and convert big announcements into real market impact.
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