The price of Hyperliquid has seen a slight decline of 1.2%, now trading at approximately $46.57, following a significant uptick. Despite this short-term dip, the HYPE token has surged by 19.5% over the past week, displaying strong investor interest and optimism regarding the project’s long-term prospects.
Market Pressures from Competition and Profit-Taking
After a robust rally last week, Hyperliquid has encountered selling pressure close to the 38.2% Fibonacci retracement level at $49.36. The failure to break above this threshold triggered traders to secure profits, leading to a brief correction.
The MACD histogram is negative on the four-hour chart, indicating weakened short-term momentum, while the RSI has dipped from the overbought territory at 69.89, suggesting the market may require some cooling off after a weekly increase of 19%.
Part of the sell-off can also be attributed to the rising competition from Aster, a new decentralized exchange (DEX) supported by Binance. Since its launch on September 17, Aster has seen massive trading volumes, processing $20.8 billion on its first day compared to Hyperliquid’s $9.7 billion. The rapid adoption of Aster, with $2 billion in total value locked within a week, has briefly unsettled Hyperliquid’s dominance.
Nevertheless, Hyperliquid continues to hold a commanding market presence, boasting a market capitalization of $12.74 billion and a total value locked (TVL) of $4.85 billion, representing one of the largest decentralized derivatives platforms. Traders are, however, closely monitoring short-term headwinds stemming from external competition and internal supply pressures.
Concerns About Upcoming HYPE Token Unlocking
The most immediate challenge facing HYPE is the forthcoming token unlocking event scheduled to begin on November 29. Approximately 237.8 million tokens, equivalent to about 24% of the total supply, will be released over a span of 24 months.
At current prices, this could add nearly $500 million in potential selling pressure each month, partially offset by $65 million in monthly buybacks from the project’s treasury. This situation could create a monthly imbalance of around $410 million, leading to short-term volatility as the market adjusts to the increased supply.
Despite these concerns, a recent $1 billion treasury deposit linked to the merger of Sonnet Bio and Rorschach could help mitigate some of the dilution fears. The treasury’s size and strategic reserves provide the team with the necessary flexibility to manage liquidity and maintain market confidence through buyback strategies or ecosystem growth initiatives.
Positive Underlying Trends in On-Chain Data
While short-term traders focus on resistance levels, the derivatives and on-chain data tell a more optimistic story. Open interest in HYPE futures surged from $1.27 billion last Wednesday to $1.97 billion on Monday, marking its highest level since early October.
The increase in open interest signals the entry of new capital into the market, which is generally an indicator of rising bullish sentiment. Additionally, data from CryptoQuant indicates that whales—large investors—are amplifying their positions, with buy orders dominating both spot and futures markets.
This accumulation trend suggests that institutional participants and high-net-worth clients are anticipating further gains. The network data reinforces this upbeat sentiment, as Hyperliquid’s 24-hour chain fee revenue reached $2 million, surpassing both edgeX and BNB Chain.
High network fees often correlate with elevated trading activity and liquidity, indicating strong user engagement even amidst short-term market uncertainties.
Key Technical Levels to Watch for Hyperliquid Price
From a technical perspective, HYPE has shown resilience after breaking above its descending trendline and the 50-day exponential moving average (EMA) at $43.54. Over the weekend, it maintained this level as support before rebounding above $48.57.
If the token manages to close above the next resistance level at $51.15, analysts expect the rally to extend towards the high of $59.46, last observed on September 18. However, failure to hold above the EMA of $43.54 could open the door for a deeper correction towards the support area around $41.6.
John is a seasoned journalist at The Bothside News, specializing in balanced reporting across news, sports, business, and lifestyle. He believes in presenting multiple perspectives to help readers form informed opinions. His work embodies the publication’s philosophy that truth emerges from examining all sides of every story.
