HYPE falls 22% from peak; $50–$54 support tested

Hyperliquid’s HYPE token dropped 22% from its $75 all-time high and is testing support in the $50–$54 range. The token fell below $60 on Wednesday after rejecting a retest near $76 and has moved toward the 50-day exponential moving average, the first major trend test since January.

The pullback has similarities to a consolidation in May 2025, when HYPE reached about $40 before entering a multi-week pause that did not break the daily uptrend. The relative strength index has rolled back from overbought levels but remains above common trend-reversal thresholds.

On-chain spot metrics show net selling has eased but remains negative. Aggregated spot cumulative volume delta improved from recent lows but stayed near negative $95 million, indicating selling since the early June decline still exceeds buying. Spot buyers have absorbed available supply at current prices, but the buying volume is modest compared with roughly $110 million of selling recorded during HYPE’s slide from near $76.

Derivatives markets show weaker participation. Open interest fell to about $1.73 billion from $2.2 billion at the start of June, while derivatives cumulative volume delta sits near negative $389 million. Funding rates and position data indicate traders are reducing exposure rather than opening new leveraged positions.

Technically, the $50–$54 band aligns with the rising 50-day EMA and an unfilled daily fair-value gap and represents the first significant support cluster below current prices. A daily close below roughly $53 would be the first notable bearish change on the daily chart this year. The 100-day EMA is near $51.6, the lower edge of the fair-value gap is around $49, and the next visible support area is near $38.

Trader Altcoin Sherpa wrote, “HYPE, I think anywhere in the 55-64 area is a pretty good place to accumulate this one,” and projected HYPE could reach $100 later this year while noting the outcome may depend on bitcoin’s performance. That comment reflects the trader’s view and does not constitute investment advice.

Market participants are watching the divergence between improving spot demand and declining derivatives participation. Observers will track buying activity around the $50–$54 band and changes in open interest and cumulative volume deltas for indications of the token’s next price action.