Here’s why Hyperliquid is sliding

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Hyperliquid slides 12.14% today

Highlights

Hyperliquid cut its monthly team token unlocks by nearly 90%, easing market supply concerns and boosting investor confidence in HYPE.
The HIP-3 framework enables developers to launch perpetual futures on commodities like silver and gold by staking HYPE tokens, driving trading volume growth.
HYPE currently trades at $28.92, above the MA-20 ($25.11) and MA-50 ($25.59), but remains below the MA-200 ($38.37), with support at $27.68 and resistance near $30.

Improved sentiment emerges as supply curbs and new features drive flows

Hyperliquid has reduced its monthly team token unlocks by nearly 90% to help alleviate market pressure, resulting in increased confidence around its circulating supply. The platform also launched the HIP-3 framework, allowing developers to deploy perpetual futures on commodities and traditional assets by staking HYPE tokens, which has expanded trading volumes in commodities such as silver and gold. Additionally, its buyback and fee-burning tokenomics and institutional accumulation, including a recent purchase by HYLQ Strategy Corp., have underscored growing support for the asset.

Anton Kharitonov, expert at Traders Union, sees the sharp 12.14% drop in Hyperliquid as a warning sign. He notes that staying above the short-term moving averages is not sufficient when the price lags well below the MA-200. The recent reduction in token unlocks and buyback measures offer only partial relief in the face of intense selling pressure. Kharitonov highlights diverging momentum signals and overbought readings as clear risks, especially with the price near intraday lows and volatility high. "Despite efforts to stabilize supply, the stark technical and sentiment risks signal a market prone to further downside for HYPE," he says.

Viktoras Karapetjanc, expert at Traders Union, views recent news as a sign of growing institutional confidence. He points to Hyperliquid's decisive action on team unlocks and the HIP-3 framework as strategies that strengthen HYPE's future utility and trading demand. Karapetjanc emphasizes institutional buying and commodity expansion as important drivers for long-term value. Even with short-term volatility, he maintains the bullish structure remains intact. "I expect Hyperliquid’s proactive measures to fuel renewed growth and position HYPE for further upside opportunities ahead," he asserts.

Parshwa Turakhiya, analyst, believes current sentiment around HYPE is driven by a mix of optimism on news and caution from technical signals. He sees elevated volatility as a catalyst for traders seeking rapid setups between the $28.97 and $29.37 range. The conflicting momentum readings and risk of a break below $27.68 keep short-term outlook balanced. Turakhiya highlights the value in waiting for clearer triggers above resistance. "For swing traders, I suggest monitoring for either a clean breakout or a decisive dip before taking positions in HYPE," he advises.

Mixed momentum persists as overbought signals clash with recent decline

Momentum signals are mixed, with ADX showing moderate bullish strength and MACD indicating a neutral stance. Daily RSI is in the upper range but still within “buy” territory, while Stoch RSI and CCI signal clear overbought conditions. Bull/Bear Power also suggests that buyers are dominating the recent trend, although the overbought readings hint at vulnerability. The price dropped $4 on the day, slipping 12.14%, with a gap down at the open. The current price is near today’s low, reflecting high intraday volatility and continued selling pressure after the open. Oscillators and momentum are diverging, pointing to caution as the sharp intraday decline contradicts some bullish trend signals.

Previously it was reported that Hyperliquid (HYPE) displays robust short- and medium-term bullish momentum as it trades well above its 20- and 50-day moving averages, but remains constrained below longer-term resistance levels, with overbought technicals such as RSI and CCI signaling near-term caution. While intraday buying remains dominant and momentum is supported by most indicators, a neutral MACD and stretched oscillators suggest consolidation is likely as the price approaches key resistance.

Source of Data: HYPE Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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