Can Hyperliquid avoid deeper losses after regulatory discussions with SEC Crypto Task Force?

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Hyperliquid drops 7.29% to $62.81 today

Highlights

The SEC Crypto Task Force engaged with Hyperliquid, Trade.xyz, and Sullivan & Cromwell to discuss digital asset and on-chain perpetuals regulation amid product expansion.
Hyperliquid saw major liquidity inflows tied to its new pre-IPO perpetual contract on CXMT, including a $75.3 million USDC deposit and increased institutional adoption.
HYPE/USD remains in a bearish short-term trend, projecting a high likelihood of sideways trading between $61.29 and $65.99 with little chance of upward breakout.

Product expansion and inflows amid regulatory talks drive institutional focus

The SEC Crypto Task Force held an official meeting on July 14, 2026, with the Hyperliquid Policy Center, Trade.xyz, and Sullivan & Cromwell LLP to discuss regulatory frameworks for digital assets and on-chain perpetual derivatives, according to Finance Yahoo and Blockchainreporter. In July 2026, Hyperliquid broadened its product base by launching a pre-IPO perpetual contract on ChangXin Memory Technologies (CXMT), facilitating early synthetic exposure to the chipmaker’s anticipated listing, as reported by Blockchain. Notable liquidity inflows into Hyperliquid occurred during this period, including a $75.3 million USDC deposit targeting the CXMT contract, while Hyperion DeFi’s agreement with Skew Technologies on July 15, 2026, deployed 500,000 HYPE to support new institutional perpetuals on the HIP-3 framework, according to Theblock. These developments signal ongoing product expansion and institutional engagement, though price action has remained under broader selling pressure.

Bearish signals build as short-term averages and oscillators align lower

Technically, HYPE/USD faces resistance at the Ichimoku Kijun level of $66.29 and is trading below the MA-20 ($66.19) and MA-50 ($66.53) on the hourly timeframe, but above the MA-200 ($43.01) on the daily chart. Short-term and medium-term moving average crossovers highlight sustained downside momentum intraday. The Relative Strength Index (RSI) stands in oversold territory at 27.73, while the Stochastic RSI, Commodity Channel Index (CCI), and Bull/Bear Power also display strong sell signals. The Moving Average Convergence Divergence (MACD) is on sell, Average Directional Index (ADX) remains neutral, and the Awesome Oscillator signals continued intraday weakness. Price is near local lows following a sharp drop and a small gap down, with no indicators currently contradicting the prevailing bearish setup.

Downside risk dominates near-term outlook unless resistance breaks

Looking ahead to the next 2–3 trading days, HYPE/USD is expected to fluctuate within a volatility band between $61.29 and $65.99. The probability of a short-term rebound is low, while the risk of continued declines remains elevated. A sideways scenario is the base case unless the price breaks above resistance at $66.29, which could trigger a bullish reversal. A break below $61.29 would confirm further downside momentum and extend recent losses.

Viktoras Karapetjanc, expert at Traders Union, sees Hyperliquid’s recent SEC engagement and institutional partnerships as positive signals for long-term adoption. He believes new products and liquidity inflows support growing confidence among major market participants. Short-term price momentum remains negative, but the macro and sentiment backdrop is constructive. "If HYPE holds above $61.29, I expect renewed interest and a rebound attempt as regulatory clarity and institutional activity continue to build."

Earlier, analysts noted that Hyperliquid was exhibiting bullish momentum and benefiting from regulatory engagement and institutional repositioning. The recent combination of expanded product offerings and renewed regulatory dialogue adds a complex backdrop to the current downside pressure, making a potential break below $61.29 the level to monitor for further directional shifts.

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.