Key points
- HYPE has fallen 5% in the last 24 hours and is currently trading around $27.
- The token could drop to $23 if the bearish trend continues.
Hyperliquid staking balance declines
HYPE, the native token of the Hyperliquid decentralized exchange, is one of the weakest performers among the top 20 cryptocurrencies by market capitalization. The token is trading above $27 after losing 5.8% of its value over the past 24 hours.
This bearish move follows a hawkish rate decision from the Federal Reserve on Wednesday. Market analysts note that with further rate cuts unlikely in the near term, focus will shift to liquidity and the Fed’s balance sheet policy in early 2026. Although the U.S. Treasury purchases announced today provide some support, quantitative easing is unlikely to return until economic conditions worsen—an outcome that typically increases volatility and downside risk.
Another important catalyst for HYPE’s slide is a decline in Hyperliquid’s Total Value Locked (TVL). The protocol’s TVL has fallen to $1.63 billion from $2.42 billion on October 30.
Investors continue to withdraw funds from staking contracts on the Hyperliquid chain, increasing selling pressure on HYPE. A falling TVL suggests investor confidence in the token and ecosystem is waning, prompting market participants to reduce their exposure.
Demand for hyperliquid derivatives has also eased amid current market conditions. According to Coinalyze, HYPE’s open interest (OI) dropped to $1.3 billion, down 2.5% from $1.48 billion recorded on Wednesday. OI remains well below its September peak of $2.59 billion, indicating that muted retail interest could continue to hinder a sustained recovery.
Will HYPE continue to fall?
The HYPE/USD 4-hour chart looks bearish after underperformance in the past day. The layer-1 blockchain token has slipped below short-term support at $27.50, reinforcing the current downside outlook.
The Relative Strength Index (RSI) on the 4-hour chart has dropped to 34, signaling strong bearish momentum. If RSI moves into oversold territory, HYPE could slide further in the coming hours and days.
If the bearish trend persists, HYPE may test the $23 support level for the first time since May 13.
Conversely, if buyers regain control and push the price above the $29 resistance level, HYPE could target the next significant liquidity area below the 50-day exponential moving average (EMA) at $36.23.