Hyperliquid HYPE Drops 20% from ATH, Eyes $0.33/$0.26 Support with $2M Buyback
Hyperliquid’s native token HYPE has retraced roughly 20% from its near-$46 all-time high to below $37 in the past 48 hours. Technical analysis highlights two key support zones: the former breakout level at $0.33 (value area high) and a confluence zone at $0.26, aligning with the 0.618 Fibonacci retracement, the 200-day moving average and the point of control. A break below $0.33 could trigger a deeper pullback of over 25% toward $0.26, offering a potential higher-low entry for bullish traders. Market sentiment on X suggests further downside into the low-$30s or mid-$20s if Bitcoin remains volatile. Analyst Altcoin Sherpa forecasts a drop to the low-$30 range but retains a bullish long-term outlook, while Byzantine General warns of increased selling pressure amid rising open interest. Data from HyperDash shows 51% of traders are short, covering 31% of open interest. Meanwhile, the Hyperliquid Assistance Fund repurchased $2 million worth of HYPE, allocating 97% of platform fees to buybacks, aiming to support the token and reinforce its uptrend.
Bearish
The combined news points to a short-term bearish outlook for HYPE due to its 20% retracement from the ATH, rising open interest, and a risk of over 25% drawdown if key support at $0.33 fails. Although technical levels at $0.33 and $0.26 may offer buying opportunities, high short interest (51%) and warnings of trendline breaks suggest downward pressure. The $2 million buyback provides some support and long-term bullish potential, but traders should remain cautious until HYPE proves its ability to hold above critical support levels.