HYPE Slumps After Arthur Hayes Exit, Traders Eye $55–$50 Breakdown
Hyperliquid’s token HYPE surged to a new all-time high above $75 in early June, then fell about 25% to around $56 after reports that Arthur Hayes exited his HYPE position. The drawdown accelerated sell pressure and reduced market value, raising concerns that the correction may extend.
Technical outlook is turning more bearish. Multiple analysts point to breakdown risk and chart patterns that could drive HYPE lower. Altcoin Sherpa flags a potential move to ~$44 if HYPE slips below ~$54. BATMAN and other chart commentators highlight a head-and-shoulders setup with ~$50 as the next downside area. In addition, Crypto with Haris opened a $30,000 short and targets the mid/low $40s if HYPE breaks below $55.
Still, some longer-term signals are mixed. Reports suggest reduced immediate selling pressure from centralized-exchange to self-custody flows, and Whale Factor claims Hyperliquid handled a large share of token buybacks last year—factors that could support dips. Traders’ key decision point is HYPE holding or reclaiming the $54–$55 zone versus a confirmed breakdown; if support fails, volatility could rise quickly.
Bearish
The catalyst (Arthur Hayes reportedly exiting HYPE) coincided with a sharp decline, and the later article adds more concrete technical downside scenarios from multiple analysts. Near-term price action is centered on the $54–$55 breakdown zone, with several chart-based calls pointing to $50 and possibly lower (mid/low $40s). Even though there are mitigating longer-term factors (self-custody flow reducing immediate sell pressure and claimed buyback activity), the dominant trading focus is still on whether HYPE can stabilize/reclaim resistance. Until that happens, downside risk and volatility are likely to dominate for HYPE, making the expected immediate price impact bearish.