Key Takeaways
- HYPE fell about 5% over the past 24 hours and is currently trading near $27.
- If the bearish trend continues, the token could drop to $23.
Staked Balances Fall on Hyperliquid
HYPE is the native token of the Hyperliquid decentralized exchange and has been one of the weakest performers among the top 20 market-cap cryptocurrencies. The token declined roughly 5.8% in the last 24 hours and is trading just above $27.
This downturn followed a hawkish message from the Federal Reserve on Wednesday. Market analysts say that with further rate cuts now temporarily off the table, focus will shift to liquidity conditions and the Fed’s balance-sheet policy, which is expected to be a topic again in early 2026. Although the Fed announced treasury purchases, meaningful quantitative easing typically arrives only after sharper market stress — a scenario that usually brings increased volatility and potential losses.
Another key driver of HYPE’s weakness is a decline in the protocol’s Total Value Locked (TVL). Hyperliquid’s TVL fell from $2.42 billion on October 30 to $1.63 billion more recently.
Investors have been withdrawing funds from staking contracts on the Hyperliquid chain, increasing selling pressure on HYPE. The declining TVL reflects waning confidence in the token and the broader ecosystem, prompting holders to reduce their risk exposure.
Demand for high-liquidity derivatives has also softened amid current market conditions. According to Coinalyze data, HYPE’s open interest (OI) fell to $1.3 billion from $1.48 billion on Wednesday, a decline of about 2.5%. Open interest remains far below the $2.59 billion all-time high recorded in September, suggesting muted retail interest could continue to hamper any recovery.
Will the Downtrend Continue?
The HYPE/USD 4-hour chart shows a clear bearish bias after the token’s weak performance over the last day. The Layer-1 blockchain token has broken short-term support at $27.50, reinforcing the current downside outlook.
The Relative Strength Index (RSI) on the 4-hour chart has slipped to 34, indicating strong bearish momentum. If the RSI moves into oversold territory, HYPE could extend losses over the coming hours and days.
If bears remain in control, HYPE may revisit the $23 low seen on May 13. That level would be a key test for sellers and short-term traders.
Conversely, if buyers regain control and push the price above the $29 resistance zone, HYPE could target the next meaningful liquidity area below the 50-day exponential moving average (EMA) near $36.23.