After 26% Weekly Plunge: Can HYPE Defy Gravity and Reclaim $50?
HYPE's brutal 26% weekly collapse has traders questioning its recovery potential.
The Comeback Calculus
Market watchers scrutinize whether this altcoin possesses the fundamental strength to mount a serious rebound. Historical volatility patterns suggest such sharp corrections often precede explosive moves—in either direction.
Technical indicators flash oversold signals while on-chain metrics reveal accumulating wallet activity. The $50 psychological barrier now looms as both target and resistance.
Speculators pile into derivatives markets betting on volatility continuation. Meanwhile, long-term holders exhibit diamond-hand tendencies despite the bloodbath—proving once again that crypto investors treat 26% dips like traditional financiers treat minor spreadsheet errors.
This downturn either represents a golden entry point or the beginning of a deeper capitulation phase. The path to $50 demands sustained buying pressure and renewed market confidence. Can HYPE transform this crisis into opportunity?
Price Pullback and Key Levels
Hyperliquid (HYPE) has fallen more than 26% in the past week, dropping from recent highs NEAR $59 to around $42 at press time. Trading volume over the last 24 hours is around $907 million, with a daily decline of 4%.
On shorter timeframes, the previous range POC $44–$45 is serving as immediate support. Resistance at $50 corresponds to the last breakdown. A slightly stronger wall forms around $52–$53, aligned with weekly and Monday opens. A failure of the $44–$45 line could rally interest towards the lower levels.
Analysts Note Support and Market Imbalance
Crypto Bully said HYPE retraced more than expected but is still holding above the range POC.
$HYPE
– Retraced quite a bit more than expected. However the range prior to breakout is holding well so far as we’re trading right at the POC
– Can add here for a MOVE back towards $50 (support that broke through which lead to the breakdown), invalidation is price finding… pic.twitter.com/cC4cyPIwtL
— crypto Bully (@BullyDCrypto) September 24, 2025
Ali Marinez added that the $42 region aligns with a key retracement level, calling it a “golden buy-the-dip zone.” His chart outlines a potential rebound path that could take HYPE back toward $55, provided the $42 support holds.
Husky pointed to other factors weighing on the market, including buybacks, whale selling, and token unlocks. He remarked, “That last move down is the imbalance that screams at me, though, I’d expect to see some of that filled.” Husky marked support at $38–40, with deeper levels at $30, $28, and $23. Short-term resistance is placed in the $47–50 area.
HIP-3 Update and Governance Proposals
According to Hyperliquid News, the final draft of HIP-3 is nearly ready. It includes staking requirements for creating decentralized exchanges, fee adjustments for stablecoins, and slashing penalties. HYPE staking benefits would extend to all HIP-3 trading pairs.
The final version of HIP-3 is almost ready.
– Bug bounties now correspond to those on the mainnet.
– To create a HIP-3 Dex, you must stake at least 500,000 $HYPE (which will be reduced over time).
– The first three assets will not be auctioned, but subsequent ones will function… pic.twitter.com/sgLxi49bTw
— Hyperliquid News (@HyperliquidNews) September 25, 2025
Separately, investment firm DBA has proposed reducing HYPE’s total supply by 45%, aiming to improve investor appeal. The proposal is under discussion and has not been enacted.
Futures Open Interest
Futures data shows open interest (OI) remains elevated at $2.17 billion. As May rolled in, OI crept slowly upward from less than $1 billion to current levels, suggesting the continued activity in the derivatives market.
Source: Coinglass
July and mid-September saw OI climbing together with price rallies. The recent fall from $59 down to $42 did not even see much of an unwind, meaning a whole lot of positions are still open. These are when high OI on a downtrend leaves markets open to volatility in the event of increasing liquidations.
