Hyperliquid (HYPE) crashes 60% from ATH: what’s the next stop?

HYPE is trading around $24 after a 60% decline from ATH, with bearish charts, whale activity and token supply events driving the near-term price action.

As a result, its 24-hour volume is over $550 million, while its market cap is approximately $6.6 billion. HYPE ranks 25th among cryptocurrencies in terms of market value.

Breakdown under channel support

HYPE/USDT has broken through the lower limit of its declining price channel. This trend line previously held for several months, but has now been broken, as shown by recent charts shared from analyst Duo Nine. He noted that the price action is a “extremely bearish pattern“, and added: “$22 is on the books next.”

The asset is now below the 50% Fibonacci retracement level at $26. That level has been converted into resistance. So far there has been no strong response from buyers.

Moreover, the weekly chart shows negative momentum in the major indicators. MACD shows a wider gap between MACD and the signal line, with values ​​at -1.78 and 1.12. The bars in the histogram are red and rising, implying that downward momentum is building.

Meanwhile, the RSI is at 37, indicating weak buying interest. While this level is not yet oversold, it is approaching that area. Traders are watching for signs of a local bottom, but there is no clear signal of reversal at this stage.

Whales stack up during supply events

Data on the chain shows that interest in whales has increased. According to Bitcoinsensus, three major buyers deposited a combined $37 million USDC in Hyperliquid, placing large buy orders between $15 and $25.6. One wallet alone now contains over $22.4 million in HYPE.

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In addition, the Hyper Foundation suggested burning 37 million HYPE tokens or about 10% of the supply in circulation. If this proposal is adopted, it would have longer-term implications for market supply.

Additionally, Ali Martinez reported that an additional 10 million HYPE tokens will be unlocked this month, on top of the 10 million already released since November. This creates more supply on the market, which could put further pressure on prices.

CryptoPotato also reported that Hyperliquid Strategies, a fund launched under the ticker $PURR, began trading in early December. The fund holds 12.6 million HYPE tokens and over $300 million in cash, serving as a treasury reserve linked to the Hyperliquid ecosystem.