Hyperliquid's native token HYPE is struggling to regain its footing, trading below the psychologically important $60 level and under its 50-day exponential moving average (EMA). Despite a marginal gain of less than 1% in the past 24 hours, the broader technical and demand picture suggests the recovery may have already lost momentum.
Institutional and Retail Demand Falters
HYPE has shed 10% of its value over the last seven days, making it the worst performer among the top 10 cryptocurrencies. The decline coincides with a notable drop in both institutional and retail interest. According to CoinGlass, Hyperliquid exchange-traded funds (ETFs) recorded zero inflows on Wednesday, following a $0.7 million outflow the previous day. So far this week, not a single day has seen positive ETF inflows, signaling that institutions are reducing their exposure.
Retail demand has also softened. HYPE's futures open interest (OI) slipped 0.5% in the last 24 hours to $2.5 billion. The long-to-short ratio over the same period stands at 0.99, indicating slightly more short positions than longs—a bearish signal. However, the funding rate remains positive at 0.0039%, suggesting some buyers are still active in the market.
Technical Breakdown Deepens
On the 4-hour chart, HYPE has broken below a critical ascending support trendline, reinforcing the bearish technical outlook. The token now trades below its 50-day EMA at $62.52, a level that previously provided support during the uptrend. The broken trendline has flipped into resistance around $60.72, capping any upside attempts.
Earlier recovery efforts were rejected near the descending resistance trendline at $69.67, further solidifying the bearish structure. With multiple resistance levels now overhead, the path of least resistance appears to be lower. If selling pressure persists, bears are likely to target the next significant support at $54.19. A deeper correction could test the 200-day EMA at $50.77, which may act as a longer-term floor.
Momentum Indicators Favor Sellers
The Relative Strength Index (RSI) is currently around 40, below the neutral 50 mark, indicating that bullish momentum has faded. The Moving Average Convergence Divergence (MACD) and its signal line remain below zero, confirming that bearish momentum continues to dominate. Unless these indicators show signs of recovery, traders are likely to remain cautious about a sustained rebound.
For a bullish reversal to take hold, HYPE would need to reclaim the former support trendline at $60.72 and the 50-day EMA at $62.52. A decisive move above these levels would weaken the current bearish outlook and could pave the way for a broader recovery. Until then, the market remains tilted to the downside.
For broader context on the crypto market's recent struggles, see our coverage on Bitcoin slipping below $65,800 amid geopolitical tensions and XRP consolidating below key EMAs. Additionally, the waning institutional confidence in HYPE is echoed in our earlier report: HYPE Drops Below $60 as ETF Outflows Signal Waning Institutional Confidence.
This article is for informational purposes only and does not constitute financial advice.
