Key Takeaways
- HYPE is currently valued at $27, reflecting a decline of 5% over the past 24 hours.
- If the prevailing bearish trend persists, the coin’s value may further descend to approximately $23.
Analysis of Hyperliquid’s Staking Balance Decline
The native cryptocurrency of the Hyperliquid decentralized exchange, known as HYPE, has exhibited one of the most pronounced declines among the top twenty cryptocurrencies by market capitalization. Presently, HYPE is trading at approximately $27 per coin, having experienced a substantial depreciation of 5.8% within a 24-hour timeframe.
This bearish performance trajectory can be attributed primarily to the recent hawkish monetary policy stance articulated by the Federal Reserve. Following the announcement of a red cut on Wednesday, market analysts have indicated that prospects for further rate reductions are currently off the table. Instead, the focus is anticipated to shift towards liquidity considerations and the Federal Reserve’s balance sheet management strategies in early 2026. It is important to note that despite the recent announcement concerning Treasury bill purchases, quantitative easing (QE) is unlikely unless significant market disruptions occur—an eventuality that invariably introduces heightened volatility and potential financial distress.
Another critical factor contributing to HYPE’s downward trajectory is the marked decline in Hyperliquid’s Total Value Locked (TVL), which has plummeted from $2.42 billion on October 30 to a mere $1.63 billion. This reduction in TVL indicates a diminishing confidence among investors regarding both the token and its associated ecosystem, compelling them to withdraw capital from staking contracts on the Hyperliquid blockchain and thereby exacerbating selling pressure on HYPE.
Moreover, there has been a noted contraction in demand for Hyperliquid derivatives, correlating with current adverse market conditions. As per data sourced from Coinalyze, HYPE’s Open Interest (OI) has experienced a decrease to $1.3 billion, representing a 2.5% decline from $1.48 billion recorded just prior on Wednesday. This figure also stands in stark contrast to its historical apex of $2.59 billion achieved in September, suggesting that waning retail interest in HYPE may persistently hinder any prospective recovery.
Future Price Projections for HYPE
An examination of the HYPE/USD four-hour chart reveals a prevailing bearish sentiment, underscored by recent underperformance over the preceding day. The Layer-1 blockchain token has breached its short-term support threshold at $27.50, thereby reinforcing its current negative outlook.
The Relative Strength Index (RSI) has fallen to 34 on the four-hour chart, indicative of significant bearish momentum. Should the RSI enter into oversold territory, it is plausible that HYPE could experience further declines in value over the forthcoming hours and days.
If this bearish trend continues unabated, HYPE may potentially revisit a low of $23 for the first time since May 13. Conversely, should bullish market dynamics re-emerge and buyers manage to drive prices above the resistance level of $29, HYPE could target an ensuing liquidity zone situated beneath the 50-day Exponential Moving Average (EMA) at approximately $36.23.
