- Hyperliquid price slips 1.2% amid profit-taking and Aster DEX competition.
- Upcoming HYPE token unlocks expose $11.9B in supply, raising short-term supply concerns.
- Rising open interest and whale purchases point to underlying bullish momentum.
Hyperliquid’s price saw a brief pullback after a strong intraday rally, dropping about 1.2% to trade near $46.57.
Despite the short-term dip, HYPE remains up 19.5% over the past week, underscoring continued investor interest and optimism about the project’s longer-term prospects.
The retracement follows a sharp rally and reflects a mix of profit-taking, technical rejection, and intensifying competition across the decentralized derivatives landscape.
Competition and profit-taking weigh on sentiment
After a robust run last week, Hyperliquid faced selling pressure near the 38.2% Fibonacci retracement level at $49.36.
The failed breakout prompted traders to lock in gains, resulting in a short correction.
On the 4-hour chart the MACD histogram has turned negative, signaling weaker near-term momentum, while the RSI slipped from overbought territory to 69.89—suggesting the market needed a cooldown after a 19% weekly gain.
Part of the sell-off also reflects mounting rivalry between Hyperliquid and the newly launched, Binance-backed Aster DEX.
Since its debut on September 17, Aster attracted massive trading volumes, processing $20.8 billion on its first day versus Hyperliquid’s $9.7 billion.
Aster’s rapid adoption and $2 billion in total value locked within a week shifted liquidity across the decentralized perpetuals landscape, temporarily denting Hyperliquid’s dominance.
Still, Hyperliquid maintains a leading market presence.
With a market capitalization of $12.74 billion and a total value locked (TVL) of $4.85 billion, it remains one of the largest decentralized derivatives platforms.
Traders, however, are watching closely as the project faces near-term headwinds from both external competition and internal supply pressure.
HYPE token unlocks spark concern
The most immediate challenge for HYPE is a looming token unlock event that begins on November 29.
About 237.8 million tokens—roughly 24% of the total supply—will begin unlocking over a 24-month schedule.
At current prices this adds nearly $500 million a month of potential selling pressure, partially offset by the project’s $65 million monthly buybacks from its treasury.
That could create a monthly imbalance of roughly $410 million, which may introduce short-term volatility as markets absorb the increased supply.
Despite these concerns, the project’s $1 billion application tied to the Sonnet Bio and Rorschach merger could help alleviate some dilution fears.
The treasury’s size and strategic reserves give the team room to manage liquidity and sustain market confidence via buybacks or ecosystem growth initiatives.
On-chain data points to bullish undercurrents
While short-term traders may focus on resistance levels, derivatives and on-chain data tell a more optimistic story.
Futures open interest (OI) for HYPE climbed from $1.27 billion last Wednesday to $1.97 billion on Monday—the highest level since early October.
Rising open interest indicates new capital entering the market, often a sign of increasing bullish conviction.
CryptoQuant data also shows whales—large investors—adding to positions, with buy orders dominating both spot and futures markets.
This accumulation suggests institutional and wealthy participants expect further gains ahead.
Network metrics reinforce the bullish tone.
According to Artemis Terminal, Hyperliquid’s 24-hour on-chain fee revenue reached $2 million, outpacing edgeX and the BNB Chain.
Elevated network fees often correlate with heightened trading activity and liquidity, signaling robust user engagement even amid short-term market uncertainty.
Key technical levels to watch for Hyperliquid price
Technically, HYPE has shown resilience after breaking above its descending trendline and the 50-day exponential moving average (EMA) at $43.54.
Over the weekend it held that EMA as support before climbing back above $48.57.
If the token can close above the next resistance at $51.15, analysts expect the rally to extend toward the record high of $59.46 last seen on September 18.
Failure to maintain the $43.54 EMA, however, could open the door to a deeper correction toward the $41.60 support zone.