Latest Hyperliquid (HYPE) Price Analysis

Deep Dive

1. Whale Liquidations (Bearish Impact)

Overview: A whale address lost $19.6M on HYPE long positions in the past 24h (CoinAnk), exacerbating selling pressure. Open interest dropped 12.8%, signaling deleveraging.

What this means: High leverage (up to 50x on Hyperliquid) amplifies volatility. Liquidations forced margin calls, pushing HYPE below key support at $24.44 (pivot point). With RSI at 33.28 (approaching oversold), weak bids failed to absorb the selling.

What to look out for: Further liquidations if HYPE breaks $22.27 (Fibonacci swing low).

2. Token Unlock Overhang (Bearish Impact)

Overview: Monthly unlocks of 9.9M HYPE ($236M at current prices) began November 2025. Core contributors sold $2.2M HYPE post-unlock last week (DeFi Hanzo), compounding sell-side pressure.

What this means: Buybacks (97% of fees) absorb ~$90M/month, but $180M/month net sell pressure remains. This structural imbalance has driven HYPE’s 52% drop from its September ATH ($59).

What to look out for: Dec 24 governance vote to reclassify 37M HYPE as burned – a potential bullish catalyst if passed.

3. Altcoin Weakness (Mixed Impact)

Overview: Bitcoin dominance rose to 58.96% as crypto’s Fear Index hit 28. HYPE’s 30-day correlation with BTC is 0.87, but it underperformed BTC (-3.07% vs BTC’s -0.05%).

What this means: Traders favor “safe” assets like BTC amid macro uncertainty. HYPE’s 0.019 turnover ratio (volume/market cap) shows thin liquidity magnifies downside.

Conclusion

HYPE’s drop reflects a perfect storm of leveraged unwinding, relentless supply inflation, and sector-wide caution. While the $22–$23 zone could attract dip-buyers (per Fibonacci levels), sustained recovery needs either a BTC rally or successful tokenomics reforms.

Key watch: Can HYPE hold $22.27 support, and will the Dec 24 governance vote curb sell pressure?