Key points
- HYPE has fallen 5% in the past 24 hours and currently trades around $27.
- The token could drop to $23 if the bearish trend continues.
Hyperliquid staking balance declines
HYPE, the native token of the decentralized exchange Hyperliquid, is among the weakest performers within the top 20 cryptocurrencies by market capitalization. The token trades just above $27 after losing 5.8% of its value over the last 24 hours.
This downward movement follows an aggressive policy move by the Federal Reserve on Wednesday. With further rate cuts off the table for the near term, market participants are focusing on liquidity and the Fed’s balance sheet policy heading into early 2026. Although the Fed announced Treasury purchases today, large-scale quantitative easing is unlikely until markets show more pronounced stress, which typically brings added volatility and potential problems.
Another major driver of HYPE’s weakness 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 withdrawing funds from Hyperliquid’s on-chain staking contracts, increasing selling pressure on HYPE. The drop in TVL indicates waning investor confidence in the token and its ecosystem, prompting many holders to reduce their risk exposure.
Demand for Hyperliquid derivatives has also eased amid current market conditions. According to Coinalyze, HYPE’s open interest (OI) has decreased to $1.3 billion, down roughly 2.5% from $1.48 billion recorded on Wednesday. OI remains well below its September all-time high of $2.59 billion, suggesting that subdued retail interest may continue to limit any meaningful recovery.
Will HYPE keep falling?
The 4-hour HYPE/USD chart shows a clear bearish bias, reflecting the token’s underperformance over the past day. HYPE has slipped below a short-term support level near $27.50, reinforcing the current downside outlook.
The 4-hour Relative Strength Index (RSI) has dropped to 34, indicating strong bearish momentum. If the RSI moves into oversold territory, HYPE could extend losses in the coming hours and days.
If the downtrend persists, HYPE may test the $23 low 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 zone around the 50-day Exponential Moving Average (EMA) at $36.23.