Hyperliquid price prediction: Will $35.86 support hold as HYPE drops 9.22%?

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Hyperliquid drops 9.22% to $61.76 today

Highlights

Arthur Hayes' $18 million liquidation on June 3 triggered sharp selling pressure in HYPE amid cited macroeconomic risks.
Grayscale's Hyperliquid Staking ETF launch on Nasdaq drew nearly $140 million in inflows, widening institutional access to HYPE and staking rewards.
Bearish technicals dominate as HYPE trades below short-term resistance, with a high probability of a drop toward $58.92–$65.26 in coming sessions.

Sell-off from Hayes liquidation counters ETF-driven institutional inflows

The most significant recent event impacting HYPE was the full liquidation of approximately $18 million in holdings by BitMEX co-founder Arthur Hayes on June 3, with the sale citing macroeconomic risks and resulting in swift market selling pressure. In parallel, Grayscale's introduction of the Hyperliquid Staking ETF (HYPG) on Nasdaq has opened institutional channels for capital to access HYPE and staking rewards, expanding regulated exposure for qualified investors. Trading activity on the Hyperliquid protocol reported volumes above $62 billion in May and ETF inflows have approached $140 million, while whale holdings reached over $4.2 billion with a balanced long-short ratio, though price action has remained under broader selling pressure.

Technical weakness as seller signals intensify below key resistance

Technically, HYPE is trading below the MA-20 at $64.83 and the MA-50 at $69.06, but remains above the MA-200 at $35.86. Immediate resistance is defined by the Ichimoku Kijun level at $64.47. Hourly momentum indicators register weak conditions, with both MACD and ADX showing sell signals, as well as RSI at 37.49 and CCI also in sell mode. Stoch RSI reads as neutral, BBP is in oversold territory, and the Awesome Oscillator does not give a clear directional reading, all confirming prevailing intraday seller dominance under high volatility conditions.

Downside momentum persists as breakout probability remains low

For the next 2 to 3 sessions, the typical volatility band is expected to range between $58.92 and $65.26. The probability of an upward breakout is assessed as very low, while downside continuation risk is high, making further declines more likely than a reversal. If price decisively breaks above $64.47, a short-term bullish scenario becomes plausible, whereas a clear move below support would likely trigger extension toward the lower end of the projected range.

Anton Kharitonov, expert at Traders Union, sees the recent large-scale sale by Arthur Hayes as a clear negative catalyst for HYPE. He notes that, despite robust trading activity and new institutional channels via the Grayscale ETF, technical momentum remains weak and downside risks dominate price action. The analyst cautions that, until price regains key resistance, the setup does not favor bullish positions. "As long as HYPE trades below $64.47, I remain defensive and see further declines as more likely than a short-term reversal."

Earlier, analysts noted that Hyperliquid maintained a broadly bullish structure despite periods of heightened volatility and profit-taking, underpinned by robust interest from institutional investors and ETF inflows. The current setup, however, indicates that persistent selling pressure and weak momentum have shifted the bias toward downside continuation, making the $64.47 resistance level a critical threshold for gauging any potential recovery in the coming sessions.

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

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.