Hyperliquid price dips amid rising selling pressure

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Hyperliquid slides 11.00% today

Highlights

Hyperliquid stands out for strong cash flow generation and systematic token buybacks, with over $2 billion HYPE repurchased year-to-date.
Partnerships with Coinbase as USDC treasury deployer and ETF launches position HYPE for institutional adoption, despite ongoing selling pressure.
HYPE/USD trades below major moving averages, with short-term bearish momentum; expected 5-day range is $52.63–$58.02 and upside probability is 75% if volatility persists.

Buyback-driven flows offset by persistent selling pressure

Hyperliquid was identified by Citrini Research as a leading crypto asset due to its cash flow-generating model and significant token buyback activity. Over $2 billion worth of HYPE was repurchased through the Assistance Fund since January 2025, with the protocol allocating the majority of its platform fees for systematic open market purchases. Coinbase was also appointed as USDC treasury deployer for Hyperliquid, accompanied by the launch of ETFs and a CFTC filing for perpetual futures linked to HYPE, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, sees persistent downside risks for Hyperliquid despite recent news. He notes the price remains stuck below key moving averages and intraday action is sharply negative, with sellers in clear control. Kharitonov is critical of the reliance on token buybacks, pointing out that $2 billion in repurchases have failed to stabilize price or sentiment. He cautions that bullish technical signals are countered by strong volatility and repeated test of support at $50.81. "Market participants should remain defensive and avoid chasing fleeting rallies until evidence of structural improvement appears," Kharitonov warns.

Viktoras Karapetjanc, expert at Traders Union, highlights the strong institutional engagement and innovative buyback model underpinning Hyperliquid’s potential. He sees the appointment of Coinbase and the CFTC filing as signs of maturing market structure, suggesting regulatory progress and new avenues for adoption. Karapetjanc is confident the bullish structure remains intact above $50.81 despite recent volatility. "With major inflows and strategic partnerships, I expect further growth opportunities in the near term," he asserts.

Jainam Mehta, market strategist, observes that while Hyperliquid faces broad selling pressure, technical indicators reveal a potential contrarian setup. He notes mixed momentum signals and oversold oscillators could point to an exhaustion in sellers, opening the door for a tactical rebound. "A break above $58.10 would suggest a temporary shift in bias and could be monitored for quick breakout trades," Mehta states.

Oversold momentum and tight support amid heavy intraday losses

HYPE/USD trades below both its short-term and medium-term moving averages (with the price at $55.36 versus 20-day at $62.99 and 50-day at $50.81), signaling short-term bearish momentum but ongoing support on a longer-term basis. The nearest dynamic resistance is the Ichimoku Kijun at $58.10, while support is likely near the 50-day moving average at $50.81. Momentum indicators show a mixed short-term picture: the Moving Average Convergence Divergence (MACD) on the daily chart points to strong bullish potential, and the Average Directional Index (ADX) indicates an active trend. However, oscillators such as the Relative Strength Index (RSI), Stochastic RSI, and Commodity Channel Index (CCI) all signal oversold conditions, suggesting a temporary exhaustion of sellers. Bull/Bear Power (BBP) indicates that buyers are still dominating intraday momentum, albeit with an “overbought” reading, which shows strong but possibly overextended buyer interest. Daily action is sharply negative, with the pair down $6.84 or 11.00%, trading near the session low after a downside gap of about $4.39. Intraday volatility stands at 5.63%. The tone is negative as sellers exert sustained pressure following the open.

Earlier, analysts noted that Hyperliquid’s long-term outlook remained constructive due to robust buyback mechanisms and increasing institutional engagement, despite prevailing short-term selling pressure. The current analysis adds conviction to this view by highlighting renewed bullish signals from major momentum indicators, suggesting traders should watch for a breakout above $58.10 as a trigger for renewed upside momentum.

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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