Key Conclusions
- HYPE has risen by less than 1% and is trading around $27 per coin.
- The token could reclaim the psychological $30 level amid plans to burn the Support Fund holdings.
Hyperliquid Proposes to Burn Support Fund Holdings
HYPE, the native token of the Hyperliquid decentralized exchange, gained under 1% in the past 24 hours, making it one of the better performers among the top 20 cryptocurrencies by market capitalization.
This modest uptick comes while Bitcoin, XRP and Ether are trading in the red. It also follows an announcement from the Hyperliquid Foundation that it intends to permanently remove 37.11 million HYPE tokens from circulation — about 3.71% of the total supply.
The tokens are held at the Support Fund address, which automatically converts trading fees collected by the perpetual-focused exchange into HYPE to purchase the native token.
According to the team, the absence of a private key means the Support Fund address has never been controlled by anyone and could only be accessed via a forced chain fork. With a community vote underway, approval would establish a social consensus that no protocol updates will be made to access those funds, effectively recognizing the Support Fund’s HYPE as burned and permanently removing the tokens from both circulating and total supply.
Derivatives data also show traders growing more optimistic about the token. CoinGlass data indicate Open Interest (OI) rose 1.63% in the last 24 hours to $1.53 billion, signaling a higher notional value of active positions.
An increase in the OI-weighted funding rate for HYPE to 0.0839% further points to rising buy-side pressure, adding another bullish signal for market participants.
HYPE Could Soon Retake $30
The HYPE/USD 4-hour chart looks bearish and efficient after a 4% decline over the past seven days. At the time of writing, HYPE trades above a support level near $26.
News of the potential burn has likely not been fully priced in yet, which could propel HYPE higher in the coming days if the proposal is approved and market sentiment improves.
However, if HYPE fails to close the daily candle above the $26 support, the token could extend its decline toward the October 10 low, near $20.
The Relative Strength Index (RSI) sits at 40, below the neutral 50 and indicating bearish momentum. The Moving Average Convergence Divergence (MACD) and its signal line also extend the downtrend, suggesting bears remain in control for now.
Conversely, if bulls sustain their recovery and HYPE closes the daily candle above $26, the token could advance toward the next resistance level around $34, with a potential interim psychological target of $30 if buying pressure intensifies.