HYPE Plummets 27% in Just 7 Days - Here’s What’s Fueling the Freefall
HYPE token investors are feeling the squeeze as the digital asset nosedives 27% in a brutal week-long selloff.
What's Behind the Bloodbath?
Market analysts point to a perfect storm of factors driving the downturn. Profit-taking after recent gains combines with broader market jitters to create a classic crypto correction pattern. The token's previous momentum appears to have hit a wall as traders rotate into safer assets.
Technical indicators flash warning signals across the board. Support levels crumbled like a regulatory promise during bull market season. Trading volume spikes suggest both panic selling and opportunistic accumulation - because nothing says 'calculated risk' like catching a falling knife.
The Road Ahead
While short-term sentiment remains bearish, seasoned crypto veterans see these dips as inevitable market mechanics. The 27% haircut represents either a healthy correction or the beginning of a deeper trend - depending on whether you're looking at your portfolio or telling your friends about it.
Remember: in crypto, a 'strategic pullback' is just a fancy term for losing money slower than the next guy.
Profit-taking, looming token unlock spark HYPE sell-off
The ongoing decline in HYPE price is likely fueled by profit-taking efforts among investors seeking to lock in gains after its recent rally, particularly amid the broader market downturn and rising caution across the sector.
A bigger factor, however, is an upcoming $11.9 billion token unlock scheduled for November. The event has raised fears of supply dilution, pushing early whales to trim holdings and prompting traders to cut exposure.
One of the largest sell-offs came from Arthur Hayes, who had previously predicted a 26x rally for HYPE. Hayes dumped around 96,600 tokens, worth around $5 million at the time, sparking a wave of selling pressure.
On-chain trackers show several other whales following suit, including one address that recently unloaded 201,900 HYPE tokens worth $8.93 million.
Aster rivalry pressures Hyperliquid price
The HYPE token also appears to be losing ground to Aster, a new rival in the perpetual DEX space. Competition from the new is pulling attention away from HYPE, weakening its momentum and market position. Aster also recently overtook Hyperliquid in 24-hour trading volume, reaching $21.89 billion, reflecting shifting user and investor interest.
On the technical side, HYPE is now 28% below its all-time high. The MACD line at -1.699 signals rising bearish momentum, while the ADX at 27.50 confirms trend strength. If the downtrend holds, HYPE may retest the $40 support or drop further toward $36. To regain momentum, bulls must reclaim the $46 level.
