- Hyperliquid price falls 1.2% amid profit-taking and competition from Aster DEX.
- Upcoming HYPE token unlocks worth $11.9 billion create near-term supply concerns.
- Rising open interest and buy-side activity point to bullish momentum.
The Hyperliquid price pulled back slightly after a strong run, declining 1.2% to trade around $46.57.
Despite this short-term dip, the HYPE token has gained 19.5% over the past week, underscoring continued investor interest and optimism about the project’s long-term prospects.
The retracement follows a sharp rally and reflects a combination of profit-taking, technical resistance, and increased competition in the decentralized derivatives space.
Competition and profit-taking weigh on sentiment
After a robust advance 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, producing a short correction.
On the 4-hour chart, the MACD histogram turned negative, signaling a weakening of short-term momentum, while the RSI fell from the overbought zone at 69.89, suggesting the market needed a cooldown following the weekly 19% surge.
Source: CoinMarketCap
Part of the sell-off also reflects growing rivalry with the newly launched, Binance-backed Aster DEX.
Since its debut on September 17, Aster recorded massive trading volumes, processing $20.8 billion on day one compared with $9.7 billion on Hyperliquid.
Aster’s rapid adoption and its roughly $2 billion in total value locked within a week have shifted liquidity in the decentralized perpetuals landscape and temporarily dented Hyperliquid’s dominance.
Still, Hyperliquid remains a major market presence.
With a market capitalization of $12.74 billion and a Total Value Locked (TVL) of $4.85 billion, it continues to rank among the largest decentralized derivatives platforms.
Traders are watching closely, however, since the project faces near-term headwinds from both external competition and internal supply pressure.
HYPE token unlocks expose supply concerns
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 be released over a 24-month schedule.
At current prices, this increases potential selling pressure by nearly $500 million per month, partially offset by monthly buybacks of $65 million funded from the project treasury.
That could create a monthly net imbalance of approximately $410 million, which may spark short-term volatility as the market absorbs the added supply.
Despite these concerns, a $1 billion filing linked to the Sonnet Bio and Rorschach merger could help alleviate some dilution fears.
The size of the treasury and strategic reserves gives the team room to manage liquidity and support market confidence through buybacks or ecosystem growth initiatives.
On-chain indicators show bullish undercurrents
While short-term traders focus on resistance zones, derivatives and on-chain data reveal a more optimistic picture.
HYPE futures open interest rose from $1.27 billion last Wednesday to $1.97 billion on Monday, the highest level since early October.
Source: Coinglass
Rising open interest indicates new capital entering the market and is typically a sign of growing bullish conviction.
Data from CryptoQuant also show whales and large investors increasing positions, with buy orders dominating both spot and futures markets.
This accumulation trend suggests institutional and high-net-worth participants are positioning for further gains.
Network metrics reinforce the optimistic tone.
According to Artemis Terminal, Hyperliquid’s 24-hour on-chain fee revenue reached $2 million, surpassing edgeX and BNB Chain.
Higher network fees often correlate with elevated trading activity and liquidity, indicating strong user engagement even amid short-term market uncertainty.
Key technical levels to watch for the Hyperliquid price
Technically, HYPE has shown resilience after breaking above its descending trendline and the 50-day exponential moving average (EMA) at $43.54.
That level held as support over the weekend before the price climbed back above $48.57.
If the token closes above the next resistance at $51.15, analysts expect the rally could extend toward the record high of $59.46, last reached on September 18.
Conversely, failure to hold above the $43.54 EMA could open the door to a deeper correction toward the $41.60 support zone.