Hyperliquid (HYPE) prices just keep falling as the token slipped past key support levels this week, down almost 8%—that’s three straight weeks in the red. What’s driving it? The big story is the $4.9 million loss suffered by Hyperliquid Provider (HLP), the market maker behind the DEX. That blow came after a Popcat (POPCAT) trader faked a massive buy wall, shook up the order book, and set off a wave of liquidations.
Right after the incident, the DEX hit pause on its Arbitrum bridge. You can still deposit and withdraw, but it rattled the community. Retail traders have clearly lost confidence. Just look at CoinGlass: HYPE futures open interest crashed from $2.08 billion in late October to $1.56 billion now. That’s a big drop in risk appetite.
Technical Signals Don’t Look Good
Technically, things are ugly. HYPE trades below its 200-day EMA at $39. Both the 50- and 100-day EMAs, sitting around $43, keep pushing the price down. Sellers are in control, no question. The MACD is still below the signal line—textbook bearish crossover.
RSI just hit 43, so there’s real selling pressure, though it’s not quite oversold yet. If HYPE closes below $35—which already got tested this month—expect more pain. The next stop could easily be $30, a level we haven’t seen since May.
What to Watch: $35 Is Make-or-Break
Bulls need to see HYPE break back above $42–$43 to even think about a rebound. If that happens, maybe we get a shot at $50 again. But honestly, after the HLP mess and with retail traders staying on the sidelines, any bounce faces a tough road.
Right now, HYPE is stuck in a rough spot. Liquidity risks, falling open interest, and ugly charts all point the same way. For now, $35 is the last stand—hold it, or risk a much deeper drop.
