Hyperliquid drops over 11% after short-term selling pressure and robust institutional activity

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Hyperliquid slides 11.33% today to $59.26

Highlights

Hyperliquid expanded its institutional footprint as Hyperion DeFi allocated 500,000 HYPE tokens to Skew Technologies, securing equity rights and revenue sharing under HIP-3.
HYPE trading activity surged with open interest topping $11 billion in July 2026, fueled by HIP-3 markets and institutional ETF listings, though selling pressure persists post-token unlock.
Technicals show HYPE trading below key averages with momentum readings oversold, projecting a five-day range of $54.46–$63.47 and bias toward continued downside.

Structural buybacks and ETF launches counteract broad selling pressure

Hyperliquid expanded its ecosystem and institutional reach with Hyperion DeFi allocating 500,000 HYPE tokens, valued at over $33 million, to Skew Technologies under the HIP-3 framework, granting equity rights and revenue share to Hyperion DeFi. In May 2026, Bitwise and 21Shares launched spot HYPE ETFs, and HYPE was added to the Bitwise 10 Crypto Index ETF at a weight of approximately 0.95%. The platform recorded open interest above $11 billion in July 2026, with HIP-3 markets responsible for nearly half of perpetual trading volume, and nearly all trading fees have been routed into HYPE buybacks. A major token unlock occurred without measurable price disruption, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, notes that HYPE continues to face firm bearish momentum in both short and medium terms, as price sits below the 20-day and 50-day moving averages. He points to mixed technicals, with several oversold signals offset by neutral MACD and persistent downward pressure. Ecosystem growth and institutional inflows have failed to offset the broader selling environment, indicating underlying weakness. Kharitonov cautions that intraday buyer interest, reflected in Bull/Bear Power, offers little relief as volatility remains high and price action stays pressured. He says, "Until HYPE reclaims stronger resistance levels, traders should expect further downside and remain defensive."

Viktoras Karapetjanc, expert at Traders Union, highlights the strong fundamental story supporting HYPE despite short-term declines. He sees persistent institutional participation, expanded ETF exposure, and a resilient ecosystem as powerful drivers for future appreciation. Karapetjanc believes long-term structure is bullish, with token buybacks and open interest growth setting the stage for further upside. "I expect HYPE to capitalize on recent institutional developments and maintain its growth trajectory," he states.

Short-term bearish momentum holds as technical readings diverge

HYPE/USD is trading below its 20-day and 50-day moving averages at $66.47 and $65.63, respectively, but remains well above the 200-day moving average at $43.18. This arrangement indicates short- and medium-term bearish momentum amid long-term structural support. The immediate resistance is at $60.56, with support at $58.8. Higher resistance bands sit well above current pricing, aligning with a bullish long-term trend. Technical signals are mixed: MACD and ADX are neutral, while the RSI is at 41.7 and in the Sell zone. Stochastic RSI and CCI both show oversold conditions. Bull/Bear Power is positive at 1.31, suggesting intraday buyer interest with overbought risk ahead. The Awesome Oscillator is neutral. Intraday volatility stands at 4.98% and price holds close to the session low, reflecting pressured trading conditions and divergence between oversold technical readings and persistent downward action.

Earlier, analysts noted that Hyperliquid faced persistent selling pressure despite active institutional participation and positive ecosystem developments. The continued alignment of bearish momentum with elevated volatility signals that traders should monitor the $58.8 support for signs of stabilization or further downside risk 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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