Key Takeaways
What is the current outlook for the HYPE price?
The hyperliquid price stabilized around the $30 to $35 zone, a key zone that had previously led to new highs.
Will buybacks trigger a turnaround?
The buyback could build confidence among traders, resulting in more acquisitions and thus triggering a turnaround.
The current price action of Hyperfluid [HYPE] is up just one percent in the past 24 hours, despite the recent flash crashes. The drastic drops occurred on the last two Fridays of this month.
Despite this decline, prices appeared to be at key levels, insinuating that the correction may be coming to an end. Additionally, Hyperliquid’s treasury was active with its buyback program.
The hyperliquid buyback reached $522 million
According to data from Tokenomist, the HYPE buyback mechanism has collected more than $522 million worth of tokens since its launch, accounting for more than 5.6% of the circulating supply.
The latest purchase added 4,000 HYPE for $140,000, continuing the steady accumulation trend from March through October.
Additional insights show that 15.26 million HYPE were acquired using protocol fees. Price charts indicate that HYPE’s value generally rose alongside these buybacks, barring a slowdown since mid-September.
Source: Tokenmist
The Treasury Department took advantage of the ongoing correction in the broader market to acquire more HYPE tokens. Will HYPE now turn away from this accumulation?
Will HYPE turn around from THIS key level?
The charts showed that HYPE had broken below a major trendline and was making lower highs and lows. This was an indication of a bearish price structure.
The On Balance Volume (OBV) of negative 3.62 billion and the Chaikin Money Flow (CMF) of -0.10, at the time of writing, further indicated that the structure is bearish.
However, it was a pleasant observation to see the price stabilize around the $30 to $35 zone. The zone previously made two consecutive new highs for HYPE, $50 and $52 respectively, after two weeks of consolidation.
Source: TradingView
The continued reduction in circulating supply through buybacks by the Hyperliquid Treasury foreshadowed an impending reversal.
However, the turnaround was not immediate given the current overall market structure, which was weak.
Spot traders are quiet!
When comparing the activities of Spot and Futures, it was found that derivatives traders were responsible for huge orders. The average order size in the spot market was normal, while that of Futures was dominated by large whale orders.
These derivative orders were placed on the Binance exchange according to CoinGlass facts. The 50x leverage positions were concentrated between $34 and $36, with the cumulative long positions at $7.30 million versus $5 million.
Source: CryptoQuant
Current orders indicate a possible price reversal, although the risk of a further decline remains due to short positions near the accumulation zone.
Overall, HYPE is trading at a critical level that could shape its next move. Maintaining this level could trigger a recovery, while a collapse could lead to further losses.
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