Hyperliquid (HYPE) Price Drops 25%: Is the Correction Nearly Over?

Hyperliquid’s native token, HYPE, remains under pressure after extending its month-long correction, leaving investors questioning whether the decline is a healthy pullback or a sign that the token’s strong momentum is fading. While recent price action has weakened market sentiment, technical indicators suggest the broader uptrend may still be intact if key support levels continue to hold.

HYPE is currently trading near $53.20, marking a decline of roughly 25% over the past month. The token has slipped below both its 50-day and 100-day moving averages, located around $57.20 and $60.30, respectively. These levels have now shifted from support to resistance, creating additional hurdles for any near-term recovery.

Despite the weakness, HYPE remains just above a major long-term support zone. The 200-day moving average, approaching the $50 level, could serve as a critical technical floor where buyers may step in aggressively. Holding above this area would reinforce the view that the current sell-off is a normal correction within a broader bullish trend rather than the beginning of a prolonged bear market.

Momentum indicators, however, still favor caution. The Relative Strength Index (RSI) has dropped to around 33, placing HYPE close to oversold territory. Although oversold conditions often increase the likelihood of a short-term rebound, they do not guarantee a trend reversal without a noticeable decline in selling pressure. Trading volume has also fallen significantly compared with the elevated activity seen in May and June, indicating that many investors remain on the sidelines awaiting stronger confirmation before re-entering the market.

Market sentiment has also been weighed down by reports of institutional transfers to exchanges involving major holders, including Bitwise and Multicoin Capital. These transactions have fueled speculation that large investors could continue trimming their positions, adding to selling pressure.

Even so, Hyperliquid’s fundamentals remain solid. The protocol continues to rank among the leading decentralized perpetual trading platforms, maintaining strong trading activity despite the recent price decline. For now, the correction appears to reflect profit-taking and broader market weakness rather than a deterioration in Hyperliquid’s long-term outlook.