Hyperliquid traded near $24 at press time, marking a decline of more than 60% from its all-time high of approximately $59. The token lost over 10% in the last 24 hours and nearly 13% across the previous week.
What Happened: Technical Breakdown
Trading volume reached $550 million over 24 hours. Market capitalization stood around $6.6 billion, ranking HYPE as the 25th-largest cryptocurrency by market value.
HYPE fell through the lower boundary of its descending price channel, breaking support that held for several months. Analyst Duo Nine described the price action as an "extremely bearish pattern," noting that "$22 is on the books next."
The token now sits below the 50% Fibonacci retracement level at $26, which has turned into resistance. Buyers have shown no strong reaction at current levels.
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Why It Matters: Supply Pressure
The Hyper Foundation proposed burning 37 million HYPE tokens, representing approximately 13% of circulating supply. Validators must vote by Dec. 21, with stake-weighted results announced Dec. 24.
On-chain data from Bitcoinsensus showed three large buyers deposited a combined $37 million USDC into Hyperliquid on Dec. 17. One wallet alone holds over $22.4 million worth of HYPE. Address 0x5Ae4 placed limit buy orders at $15, while wallet 0xE867 holds 926,488 HYPE valued at $22.4 million.
The weekly chart shows negative momentum across major indicators. MACD displays a widening gap between the MACD line and signal line, with values at -1.78 and 1.12. The histogram bars are red and increasing, signaling accumulating downward momentum.
RSI sits at 37, indicating weak buying interest. Although not yet oversold, the indicator approaches that territory.
Token unlocks add supply pressure. The first major unlock occurred Nov. 29, releasing 9.92 million HYPE tokens worth $312 million. Additional monthly unlocks of approximately 10 million tokens continue through the vesting schedule.
Hyperliquid Strategies, a fund trading under ticker PURR on Nasdaq, launched in early December following a merger. The fund holds 12.6 million HYPE tokens and over $300 million in cash, serving as a treasury reserve linked to the Hyperliquid ecosystem. The company announced a $30 million stock buyback program within days of going public.
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