Key Points
- HYPE fell about 5% over the past 24 hours and is currently trading near $27.
- If the bearish trend continues, the coin could slide toward $23.
Hyperliquid staking balances decline
HYPE, the native token of the Hyperliquid decentralized exchange, is among the weakest performers within the top 20 cryptocurrencies by market capitalization. The token has lost roughly 5.8% of its value in the past 24 hours and is trading above $27 per coin.
This bearish movement followed a hawkish turn from the Federal Reserve on Wednesday. Market analysts now expect further rate cuts to be delayed, with attention shifting to liquidity conditions and the Fed’s balance sheet policy into early 2026. Despite recent announcements of government bond purchases, meaningful quantitative easing is unlikely to resume until conditions change, which tends to increase volatility and heighten downside risk.
Another significant driver behind HYPE’s weakness is the decline in Hyperliquid’s Total Value Locked (TVL). The protocol’s TVL fell from $2.42 billion on October 30 to $1.63 billion.
Investors have continued to withdraw funds from Hyperliquid’s staking contracts, putting additional selling pressure on HYPE. The TVL drop suggests waning confidence in the token and ecosystem, as holders reduce their exposure to perceived risks.
Demand for Hyperliquid derivatives has also weakened in the current market backdrop. According to Coinalyze, HYPE’s open interest (OI) decreased to $1.3 billion, down roughly 2.5% from $1.48 billion recorded on Wednesday. This level remains far below the all-time high of $2.59 billion reached in September, indicating that muted retail interest could continue to constrain a recovery.
Will HYPE continue to fall?
The HYPE/USD 4-hour chart shows an efficient but bearish structure, with the token slipping lower over the past 24 hours. The layer-1 blockchain token dropped below a near-term support at $27.50, reinforcing the prevailing downside bias.
The Relative Strength Index (RSI) on the 4-hour timeframe has fallen to 34, indicating strong bearish momentum. If the RSI slips into oversold territory, HYPE could experience further declines over the coming hours or days.
If the downtrend persists, HYPE may retest the $23 low for the first time since May 13.
On the upside, renewed buyer control that pushes the price above the $29 resistance level could open a path toward the next major liquidity zone just below the 50-day exponential moving average (EMA) at $36.23.