Hyperliquid (HYPE) fell roughly 4% over the past 24 hours, extending a broader downtrend that has seen the token shed around 20% this week.
Price moved from approximately $29.32 to $28.02, grinding lower in a controlled fashion rather than crashing, as traders navigated technical breakdowns, token unlocks, and a major leverage reset on the platform.
The technical picture is clear. Since October, HYPE has formed a series of lower highs and lower lows, and support near $29.15 broke on December 9, confirming the downtrend. Key supply zones now sit between $30.35 and $35.36, while Fibonacci projections suggest a next bearish target near $24.19.
Indicators like the Chaikin Money Flow show net capital outflows, and the DMI signals strong trend momentum to the downside. Attempts to bounce have been capped, and reclaiming the 20-day EMA near $32.53 is crucial to shifting sentiment back toward bullish.
Unlocks, Whale Activity, and a $115 Million Liquidation Amplify the Downtrend
Several structural factors are reinforcing the slide. A recurring monthly unlock of 10 million HYPE tokens adds persistent selling pressure, keeping traders cautious and encouraging profit-taking on rallies.
Whale accumulation, which peaked in November with massive buy volume and single transactions above $120 million, has cooled, removing a prior layer of strong support.
Leverage also played a key role. Reports show that over $514 million in positions were liquidated across the market in 24 hours, with Hyperliquid itself accounting for roughly $115.8 million, primarily on long positions. When a token’s own platform is at the center of a long-side wipeout, sentiment suffers, liquidity thins, and any selling pressure from unlocks or technical resistance has amplified impact.
The wider perpetual DEX sector underperformed, with HYPE joining names like dYdX and GMX in a roughly 5% drop. Ongoing structural changes, including new builder codes and upcoming token generation events, add friction for users and further weigh on price action.
Short-term bounces remain possible intraday, but daily charts confirm the bearish trend.
The takeaway is that Hyperliquid’s recent 4% drop is not a sudden shock. It is a continuation of an established downtrend, driven by token unlock overhang, fading whale accumulation, technical breakdowns, and leverage reductions.
Until supply-demand dynamics shift, rallies are likely to be sold into and the grind lower may continue.
