Why is Hyperliquid price down today?

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Hyperliquid slides 10.38% today

Highlights

Hyperliquid's protocol upgrades and significant buyback activity, exceeding $1 billion in tokens, underpin ongoing fundamental support for HYPE.
HYPE attracted $31.4 million in net ETF inflows in one week and led with over 35% share of decentralized perpetuals exchange volume.
Despite heavy short-term selling pressure and an intraday drop to $62.05, medium- and long-term technicals project a sideways-to-upward bias in the $56.36–$67.74 range.

Net inflows and buybacks fail to offset ongoing price pressure

Hyperliquid operates on its own high-performance Layer 1 blockchain and recently recorded protocol upgrades that added new perpetual contracts on external platforms. The HYPE token was reported to benefit from staking, fee discounts, on-chain governance, and a large-scale buyback and burn mechanism, with buybacks removing over $1 billion in tokens. HYPE also saw $31.4 million in net ETF inflows within a week and accounted for over 35% of decentralized perpetuals exchange volume, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, takes a cautious stance on HYPE’s current trajectory. He notes persistent selling pressure and a decisive 10.38% drop despite protocol upgrades and buybacks. HYPE’s inability to recover above short-term moving averages, combined with the failure of strong inflows to support pricing, signals underlying market skepticism. The positive momentum indicators are overshadowed by the closing price near session lows, raising the risk of a deeper correction below $61.64. "Until renewed demand overcomes current technical weaknesses, I see limited upside and would remain defensive here."

Viktoras Karapetjanc, expert at Traders Union, sees opportunity in HYPE's broader setup. He highlights strong net ETF inflows, aggressive buybacks, and robust market share as positive fundamental drivers. While short-term volatility is high, the bullish structure remains intact above long-term averages. Further growth is expected once HYPE reclaims $64.36 and builds confidence on continued protocol upgrades. "With solid fundamentals and institutional flows, I expect buyers to re-emerge and target the upper range soon."

Parshwa Turakhiya, analyst, observes a pivotal short-term setup for HYPE. The breach below the 20-day moving average and Kijun signals strong near-term bearish sentiment, yet underlying momentum remains positive. He believes market action will likely be range-bound as traders await a break of $64.36 or $61.64 to confirm direction. "For now, I’d look for quick setups within the volatility band, but a decisive move above resistance would trigger a sharper rally play."

Mixed technical signals as short-term weakness meets long-term strength

HYPE/USD is trading below its 20-day moving average (MA-20) at $64.36 and the Ichimoku Kijun at $64.82, but remains above both the 50-day and 200-day moving averages, with MA-50 at $57.17 and MA-200 at $38.48. This setup indicates short-term seller pressure, medium-term strength, and a maintained long-term bullish trend. The near-term ceiling stands at $64.36, while support is identified at $61.64. Momentum indicators paint a mixed picture: the MACD and ADX point to continued bullish momentum, RSI is neutral at 53.43 with a 'Buy' signal, and both Stochastic RSI and CCI are neutral. Bull/Bear Power (BBP) remains positive at 3.01 and flagged as overbought, suggesting caution. The daily session featured a sharp 10.38% decline, with price action near the intraday low and a volatility amplitude of 9.26%, highlighting heavy post-open pressure even as most momentum signals remain positive.

Earlier, analysts noted that despite robust ecosystem growth and institutional interest, Hyperliquid remained under persistent selling pressure with short-term downside risks. The current outlook, bolstered by ongoing protocol upgrades and renewed ETF inflows, signals that price action remains highly sensitive to momentum shifts, making a break of the $64.36 short-term ceiling a pivotal trigger for further upside 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

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