What triggered Hyperliquid's latest price pullback

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Hyperliquid slides 10.68% today

Highlights

Bitwise invested $5.2 million to acquire 77,100 HYPE tokens, backing the launch of its Hyperliquid ETF and promoting ecosystem engagement.
Hyperliquid has captured 8.3% global open interest in decentralized perpetuals, driving over $1 billion in annualized protocol revenue and robust buyback activity.
HYPE trades in a bullish structure but faces overbought conditions with a projected 5-day range of $60.47 to $77.59, suggesting potential volatility and exhaustion risk.

Institutional accumulation and protocol buybacks counter persistent selling pressure

Bitwise acquired approximately 77,100 HYPE tokens (around $5.2 million) to back its newly launched Bitwise Hyperliquid ETF, accompanied by strong participation in protocol-driven buybacks whereby up to 99% of trading fees are used to buy and burn HYPE. Hyperliquid has become a leading platform in the decentralized perpetual futures space, recently recording about 8.3% global open interest ($9.6 billion) and more than $1 billion in annualized protocol revenue, which supported ongoing buyback activity. Institutional and retail engagement was reported as rising, with increased derivatives volumes and open interest as new product features enabled trading across synthetic TradFi and crypto assets, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, sees Hyperliquid’s short-term strength as vulnerable. Despite the bullish structure above key moving averages, he believes the 10.68% drop and overbought oscillators reveal underlying fragility. Kharitonov notes strong buyback activity and institutional ETF inflows, yet cautions that price action remains dictated by broad selling pressure and gap-induced volatility. He points out that positive momentum signals are contradicted by exhausted oscillator readings, which could lead to a sharp correction if support fails. "Current enthusiasm is overextended — traders should be alert for quick reversals and limit risk exposure," he warns.

Viktoras Karapetjanc, expert at Traders Union, highlights Hyperliquid’s robust institutional support and buyback-driven fundamentals. He sees strong product adoption and growing derivatives volumes as critical drivers sustaining a bullish trend, regardless of short-term volatility. Karapetjanc emphasizes that ETF inflows and synthetic product launches confirm ongoing demand and expanding market reach. "Bullish structure remains intact, and I expect further growth as institutional and retail interest deepen market liquidity," he says.

Jainam Mehta, market strategist, notes that HYPE trades well above all major moving averages, signaling prevailing bullish momentum. However, Mehta sees a tactical risk as overbought signals and daily volatility create potential for contrarian setups. He suggests monitoring divergence between momentum and oscillator signals for a possible short-term pullback. "Price could break out if bullish momentum persists, but a sharp unwind may offer attractive entries on dips," he comments.

Diverging overbought signals raise exhaustion risk for positive momentum

HYPE/USD is trading above the 20-day, 50-day, and 200-day simple moving averages ($64.67, $54.40, and $37.60), confirming a bullish structure across short, medium, and long-term trends. The nearest significant dynamic support is near the Ichimoku Kijun line at $64.82, with short-term resistance seen around the prior session’s high and the 5-day average.

Momentum remains supportive on the daily timeframe, as MACD and Average Directional Index (ADX) both signal continued upward bias. However, the Relative Strength Index (RSI), Stochastic RSI, and Commodity Channel Index (CCI) indicate the market is overbought, while Bull/Bear Power (BBP) shows buyers still dominate intraday momentum and also highlights overbought conditions. The Awesome Oscillator’s buying signal supports the broader trend. After opening with a downside gap of about $4.20, the price has dropped 10.68% to $67.32, now sitting near the day’s low within a wide intraday range (volatility amplitude 10.25%). The intraday tone is heavy with clear pressure after the open. Some divergence is present as overbought oscillators contradict positive momentum signals, suggesting the current bullish structure faces exhaustion risks.

Earlier, analysts noted that Hyperliquid’s price action was under short-term pressure despite persistent institutional demand and buyback activity supporting market participation. The latest analysis suggests that while structural momentum remains bullish, heightened volatility and overbought signals increase the risk of a corrective move if HYPE fails to sustain levels above the $64.82 Kijun support.

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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