Key takeaways
- HYPE rose just under 1%, trading around $27 per coin.
- The token could retake the psychological $30 level as plans move forward to burn the rescue fund.
Hyperliquid proposes burning the rescue fund
HYPE, the native token of the Hyperliquid DEX, ticked up just under 1% over the past 24 hours, making it one of the stronger performers among the top 20 cryptocurrencies by market capitalization.
This modest gain came even as Bitcoin, XRP and Ether traded in the red. The move coincided with an announcement from the Hyper Foundation outlining plans to permanently remove 37.11 million HYPE tokens from circulation — about 3.71% of the total supply.
The tokens are held in the rescue fund address, which automatically converts trading fees into HYPE as part of the exchange’s fee mechanism. According to the team, the rescue fund address has no private key control, so accessing those tokens would require a hard fork. The proposed community vote, if approved, would create a social consensus that no protocol upgrade should be used to recover the funds.
Derivative market data also points to growing trader optimism. CoinGlass data shows Open Interest (OI) climbed 1.63% in the past 24 hours to $1.53 billion, signaling an increase in the notional value of active positions.
A weighted OI funding rate of 0.0839% for HYPE further indicates rising buy-side pressure, adding fuel to potential upward price moves.
HYPE could reclaim $30 soon
On the 4-hour chart, HYPE/USD has weakened after losing roughly 4% over the last seven days. At the time of writing, HYPE trades above a support area near $26.
The market has not fully priced in the possible burn, and confirmation of the proposal could push HYPE higher in the coming days.
If HYPE fails to secure a daily candle close above $26, the token could extend its decline toward the October 10 low near $20.
The RSI sits around 40, below the neutral 50 level, suggesting bearish momentum is present but fading. The MACD and signal lines remain aligned with the downtrend, indicating that downward pressure has not yet fully dissipated.
Conversely, if bulls push HYPE to close daily candles above $26, the token could stage a recovery toward resistance near $34 and potentially retake the $30 psychological level.