Hyperliquid's native token HYPE slipped below the $90 mark on September 28, extending its pullback from last week's record high as large holders moved significant amounts to exchanges and leveraged long positions were liquidated.
At the time of writing, HYPE was trading near $89.13, down 4.5% over the past 24 hours and 5.4% over the past seven days. The token had briefly touched $93 earlier in the session before sliding through $92 and $90, continuing its retreat from the all-time high of $97.98 reached on September 23.
Whale activity adds selling pressure
Large holder transactions have been a primary driver of the recent downside. According to Lookonchain, a wallet deposited 177,518 HYPE (worth approximately $16.08 million) into OKX and Bybit on September 28. Another wallet linked to Hypersphere Ventures sold 62,869 HYPE for $5.78 million. While exchange deposits do not guarantee an immediate sale, these moves follow a series of substantial transfers over the past week.
Multicoin Capital also moved an additional $12.15 million worth of HYPE to Coinbase Prime last week, as reported by crypto.news. Since July 28, Multicoin's total deposits have reached 4.23 million HYPE, valued at roughly $285 million at the time of those transfers. Additionally, five other large addresses have begun unstaking HYPE worth nearly $90.4 million, which could become available for transfer or sale once the unstaking process completes.
Liquidations and market dynamics
The selling pressure has coincided with liquidations in the HYPE perpetual market. Open interest on Hyperliquid stood near $1.86 billion early on September 28, according to Coinglass, while the hourly funding rate remained positive at 0.0013%, indicating that long positions were paying shorts. This suggests that leveraged longs have been caught off guard by the price decline, potentially accelerating the move lower.
HYPE's fall follows a record high of $97.98 on September 23. Historical price data from Coingecko shows subsequent daily closes near $94.05, $92.10, $92.30, $92.61, and $91.68 through September 27, as traders took profits after the rally. The recent spot listing on Binance has also made it easier for holders to sell through one of the largest trading venues, adding another potential source of selling pressure.
Key support levels to watch
HYPE is currently testing its first major support after the drop from the record high. The daily 20-day exponential moving average (EMA) sits at $88.42, just below the current price. A daily close below this level would weaken that support and expose the 50-day EMA at $80.96, giving HYPE a potential downside target near $81.
If selling pressure intensifies and pushes the token below $81, the 100-day EMA at $72.77 would become the next major support. However, the price remains well above that level for now.
The daily Relative Strength Index (RSI) has fallen to 54.71 from above 70 during the September rally and is now below its moving average at 61.25. While momentum has cooled considerably, the RSI remains above 50 and has not yet reached oversold territory, leaving room for sellers to push the price lower before the indicator reaches levels typically associated with heavy selling.
On the 4-hour chart, the risk of a move below $88 is elevated. HYPE has broken through the main Fibonacci retracement levels from the move between $89.91 and $97.99, and the MACD remains bearish. The MACD line stands at -0.742, below the signal line at -0.350, with the histogram negative at -0.392.
A break below the $88-$89 area would bring $80.96 into focus as the primary downside target. If $81 fails to hold, the daily 100-day EMA near $72.77 provides the next major technical level.
For HYPE to reduce the immediate downside pressure, it would first need to reclaim $89.91. Fibonacci resistance then sits near $91.81 and $93, followed by $94.92 and $96.26 before the $97.99 high.
This article is for informational purposes only and does not constitute financial advice.
