Key Insights
- HYPE has declined 5% in the past 24 hours and is currently trading around $27.
- If the downtrend continues, the coin could drop to $23.
Hyperliquid staking balance declines
HYPE, the native token of the Hyperliquid decentralized exchange, sits among the weaker performers within the top 20 cryptocurrencies by market capitalization. The token is trading just above $27 after losing roughly 5.8% of its value in the last 24 hours.
The recent downtrend followed a hawkish surprise from the Federal Reserve. Market analysts say that with additional rate cuts off the table for now, attention will shift to liquidity conditions and the Fed’s balance sheet strategy heading into early 2026. Although the Fed announced purchases of government bonds, widespread quantitative easing is only likely if financial strains emerge, which typically adds volatility and downside risk.
A major driver of HYPE’s weakness is the 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 are continuing to withdraw funds from staking contracts on the Hyperliquid chain, increasing sell pressure on HYPE. A falling TVL suggests diminishing confidence in the token and its ecosystem, prompting holders to reduce risk exposure.
Demand for Hyperliquid derivatives has also softened amid current market conditions. According to Coinalyze, HYPE’s Open Interest (OI) has dropped to $1.3 billion, a 2.5% decline from the $1.48 billion recorded on Wednesday. This level remains well below the token’s all-time high of $2.59 billion reached in September, indicating that weak retail interest could continue to constrain any sustained recovery.
Will HYPE keep falling?
The HYPE/USD 4-hour chart looks bearish, reflecting the token’s underperformance over the past day. The Layer-1 blockchain token has slipped beneath short-term support around $27.50, reinforcing the current downward outlook.
The 4-hour Relative Strength Index (RSI) has fallen to about 34, signaling a strong negative momentum. If the RSI slips into oversold territory, HYPE may extend losses in the coming hours and days.
If the downtrend persists, HYPE could re-test the $23 support level, a price last seen on May 13.
Alternatively, if buyers regain control and push the price above the $29 resistance, HYPE could aim for the next major liquidity zone near the 50-day exponential moving average (EMA), currently around $36.23.