HYPE Price Prediction: Is the $32 Support Point on Shaky Ground?

Hyperliquid's HYPE is currently trading around $32 following a failed breakout attempt. The combination of high leverage and low spot trading volume is tilting the scales toward potential further declines.

Key Takeaways

HYPE is trading near $32 after a failed breakout, with market dynamics presenting downside risks.
Spot prices cluster in the low to mid-$30s, maintaining a multi-billion dollar market value.
A notable 2.6% of the circulating supply was introduced recently, creating potential for volatility.
Market sentiment is divided, with some traders expressing confidence while others are more cautious.
Future price movements will heavily depend on how supply and demand dynamics play out in the coming sessions.

HYPE token price chart sliding inside descending channel with key support near thirty dollars.

HYPE's pricing is influenced by a combination of recent market activities, including the release of new tokens and strategic purchases from the Hyperliquid project’s assistance fund. Key support levels around $33 to $35 are being closely watched by traders, as a significant drop below these levels could lead HYPE towards the high $20s in the near future.

Current Market Analysis

HYPE, which recently experienced a price drop, is currently situated in the mid-$30 range, driven by supply from recent token releases and purchases from the assistance fund. Traders are focused on whether the support levels in the $33-$35 range can hold up. A breakdown from this area may set the stage for HYPE to test prices in the high $20s in the coming days.

Price Predictions

Trading activity on major exchanges indicates that spot transactions are primarily occurring in the low to mid-$30s. Currently, HYPE enjoys a fully diluted valuation in the billions, with daily trading volumes reaching several hundred million dollars. The Relative Strength Index (RSI) is hovering in the high 40s, and short-term moving averages are weighing down on prices, indicating a market that is yet to choose a definitive direction.

Supply Dynamics

Recently, approximately 9.9 million HYPE tokens—equating to 2.6% of the total circulating supply—were made available during a cliff event. This increase in available tokens, especially when juxtaposed against the ongoing daily buybacks (which amount to more than $600 million so far this year), has created a potentially volatile scenario for HYPE’s market, as the demand from the assistance fund may not be sufficient to absorb the new supply.

Social Media Sentiment

A quick glance at social media platforms like X shows a clear divide in market sentiment. One segment believes HYPE is merely lagging behind the broader market and is positioned to rise soon. In contrast, another group views the recent underperformance as part of a broader trend of risk aversion in both major and high-risk cryptocurrencies. Many are convinced that the assistance fund is quietly accumulating tokens, stating that the current trading levels may be a temporary dislocation rather than an accurate reflection of fair pricing.

HE RISKED HIS ENTIRE $10M ACCOUNT ON 3X LEVERAGE
Whale trader 0xBd8c has a long position valued at $30 million in HYPE on Hyperliquid, backed by $10 million as margin. Having already gained $2.5 million, his liquidation threshold is set at $22.5 for HYPE.

HYPE price prediction: $32 bounce looks fragile under heavy OI - 1

At present, the price charts show HYPE continuing to trend downward within a descending channel, with bulls and bears contesting the $33-$35 range. If a decisive daily close occurs below this zone, it could lead to a quick move towards the $28-$30 region, which may serve as strong liquidity support. Conversely, reclaiming and maintaining price levels in the $36-$37 range would indicate a potential exhaustion of sellers and might reopen pathways to the $40 mark and beyond by the end of the year—provided that stronger market flows and healthier trading interests return.

HYPE OI

In summary, the outlook for HYPE remains slightly bearish in the near term, primarily due to the recent increase in supply and reduced speculative trading interest. A retest of the high $20s seems likely, though there exists a less probable scenario where HYPE could reclaim the $37 level, contingent on a stabilization of macroeconomic risks and sufficient demand from the assistance fund to absorb the unlocked supply.