The Hyperliquid (HYPE) token has come under pressure this week. The HYPE price has fallen by more than six percent in the past day, slipping to around $47.85, according to data.
Just two weeks ago, Hyperliquid was trading near $57. That marks a sharp correction for one of the year’s best-performing tokens. Trading volumes remain heavy, with more than half a billion dollars changing hands in the past 24 hours.
The selloff comes even as Hyperliquid expands its ecosystem. On September 16, Circle announced that native USDC integration is now live on HyperEVM, bringing regulated stablecoin liquidity to the network. It is a milestone for Hyperliquid’s growing Layer-1 chain. But excitement over the launch has been overshadowed by a looming supply shock.
$12 Billion in HYPE Token Unlocks Set to Test Market
The biggest cloud over Hyperliquid (HYPE) is supply. On September 22, Maelstrom Fund warned that 237.8 million HYPE tokens, worth nearly $12 billion at current prices, will start unlocking on November 29. The tokens will vest linearly over 24 months, meaning about $500 million worth will enter the market every month.
Buybacks are only expected to cover around $87 million monthly, just 17 percent of the new supply. That leaves more than $400 million in excess tokens hitting the market each month.
Arthur Hayes, co-founder of BitMEX and a known HYPE supporter, revealed this week that he has exited his position, citing the mismatch between supply and demand.
Hyperliquid Price Breaks Below Key Moving Averages
Charts show a market struggling to hold higher ground. Data from Santiment indicates that the Hyperliquid price has broken below its 50-day moving average at $51.89 and is also trading under the longer-term 200-day average near $54.48. Traders widely watch these moving averages as signals of strength or weakness.
Momentum indicators also lean bearish. On TradingView, the relative strength index (RSI) sits in neutral territory but has been trending lower. The moving average convergence divergence (MACD), which tracks the distance between short and long-term averages, is flashing red.
Most technical models are giving off “sell” signals, suggesting the path of least resistance remains down.
Some traders, however, still see potential for a rebound. Crypto Bully, a popular market analyst, noted that longs were filled at recent value-area highs and suggested a bounce back towards $52 is possible if support holds.
If the Hyperliquid price breaks back into the lower value region, though, it could trigger another leg down.
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