Key takeaways
- HYPE fell 5% over the past 24 hours and is currently trading around $27.
- The coin could slide to $23 if bearish momentum persists.
Hyperliquid staking balances decline
HYPE, the native token of the Hyperliquid decentralized exchange, is among the worst-performing assets within the top 20 cryptocurrencies by market capitalization. The token trades near $27 after losing roughly 5.8% of its value in the past 24 hours.
The recent bearish move followed a hawkish turn from the Federal Reserve on Wednesday. Market analysts say further rate cuts are off the near-term table, shifting attention toward liquidity and the Fed’s balance-sheet policy into early 2026. Despite announced Treasury bill purchases, large-scale quantitative easing appears unlikely until conditions materially deteriorate—an outlook that typically brings heightened volatility and downside risk.
Another primary driver of HYPE’s weakness is the decline in Hyperliquid’s Total Value Locked (TVL). Protocol TVL has dropped to $1.63 billion from $2.42 billion on October 30, signaling a notable outflow of capital.
Investors continue to withdraw funds from staking contracts across the Hyperliquid chain, adding selling pressure on HYPE. The TVL decrease reflects waning confidence in the token and ecosystem, leading holders to reduce risk exposure.
Derivative demand has also softened in the current market. According to Coinalyze, HYPE’s open interest has fallen to $1.3 billion, down about 2.5% from $1.48 billion recorded on Wednesday. This figure remains well below September’s record high of $2.59 billion, suggesting low retail interest could continue to hamper a recovery.
Will HYPE fall further?
The 4-hour HYPE/USD chart looks bearish and orderly, reflecting the token’s poor performance over the last day. The Layer-1 blockchain token has slipped below short-term support at $27.50, reinforcing the current downtrend.
The 4-hour Relative Strength Index (RSI) sits around 34, indicating strong bearish momentum. If the RSI enters oversold territory, HYPE could extend losses over the next hours and days.
Should the downtrend continue, HYPE may retest the $23 low for the first time since May 13.
Conversely, a return of buyer control that pushes the price above resistance at $29 would open a potential move toward the next key liquidity area near the 50-day Exponential Moving Average (EMA) at $36.23.