Hyperliquid's native token, HYPE, has pulled back after briefly touching $60, with large traders positioned against the move and institutional demand showing signs of cooling. The token traded near $58.49 on August 19, down roughly 1.4% over 24 hours, though it still holds a 7.1% gain for the week, according to CoinGecko.
HYPE reached a 24-hour high of $60.41 on August 18 before sellers stepped in, pushing the price back below $59. The rally had carried the token from under $55 the previous week, and trading volume rose about 9% as the rejection at $60 unfolded. The pullback follows several failed attempts to sustain levels above $59 during the same session.
The recent advance was partly fueled by a regulatory push from the Hyperliquid ecosystem. On August 18, the Hyperliquid Policy Center and trade[XYZ] submitted a joint comment letter to the U.S. Securities and Exchange Commission, proposing a framework for pre-IPO perpetual futures. Under the plan, perpetual contracts tied to private companies could offer price discovery before public listings. Such products already trade via trade[XYZ] using Hyperliquid's HIP-3 system, which allows outside developers to deploy perpetual markets after staking 500,000 HYPE. A regulated pathway could expand the utility of Hyperliquid's on-chain infrastructure.
On-chain activity also contributed to demand. Data from August 18 showed a newly created wallet accumulating and withdrawing roughly 57,000 HYPE (worth about $3.36 million) from Coinbase. A Maven11-linked wallet withdrew 202,705 HYPE, while Monetalis-linked wallets purchased 171,543 HYPE, valued at around $9.56 million. Nansen recorded net exchange outflows of about $5.7 million over seven days, reducing available supply on trading platforms.
However, the rally became overheated near $60, especially with large players leaning against it. Nansen data from August 18 indicated that whale, smart trader, and public-figure wallets were collectively net short HYPE. Funding rates stood at approximately 0.00125% per hour, meaning leveraged longs were paying shorts. Institutional flows also weakened: HYPE exchange-traded fund flows turned positive in early August, but no additional inflows had been recorded since August 10 as of August 18.
Large holders were not uniformly accumulating. One whale sold 923,743 HYPE worth around $53 million last week, while HyperLabs unlocked 433,025 HYPE (about $23.5 million) and gradually moved tokens toward venues like Flowdesk and OKX. Separate data showed roughly $3.38 million entering exchanges during the same period, adding to selling pressure.
Technically, HYPE's daily chart shows the token trading around $58.60, above its 20-day EMA at $57.04, 100-day EMA at $56.79, and 200-day EMA at $51.30. It also sits narrowly above the 50-day EMA at $58.30, making that level critical for sustaining the recovery. The 20-day EMA remains below the 50-day EMA, indicating the trend is not fully bullish yet. A move above $58.30, followed by a bullish crossover of the 20-day over the 50-day, would strengthen the case for continued upside.
The MACD line has crossed above its signal line, and the histogram is positive, reflecting improving momentum after the rebound from August lows. However, both MACD lines remain below zero, so sustained buying pressure is needed to push the indicator into positive territory.
On the 4-hour chart, the rejection from $60 has reduced momentum. The Relative Strength Index (RSI) fell to 53.53 after nearing the 70 overbought level during the rally. An RSI above 50 still favors buyers, but the drop from recent highs signals weakening buying pressure. Price is trading close to the session VWAP at around $58.52.
Holding above the $58.30-$58.50 zone would keep HYPE near both its four-hour VWAP and daily 50-day EMA, giving buyers a base for another attempt at $60. A break below that zone would expose the 20-day EMA near $57.04 and the 100-day EMA around $56.79. Losing those levels could undermine the recovery structure and bring the recent support area around $53.50-$54 into play.
To reclaim $60, buyers need to defend the $58.30-$58.50 area and push through the recent high of $60.41. A daily close above $60.40 would clear the resistance that rejected the August 18 rally, potentially opening the door to the previous resistance region around $62. For related market analysis, see Bitcoin's whale-driven push and Hyperliquid's regulatory momentum.
This article is for informational purposes only and does not constitute financial advice.
