Hyperliquid (HYPE) Holds Steady After Three Days of Losses
Hyperliquid (HYPE) stabilizes above $26 as of Wednesday, following three days of falling prices. The Hyperliquid Foundation has started a vote to burn tokens from the assistance fund. This fund holds over 37 million HYPE tokens. The proposed burn could reduce the total supply.
This news caused bullish feelings in the derivatives market. Open Interest and funding rates have risen, showing more trading activity and buying pressure.
Hyperliquid Foundation Plans to Burn 37 Million HYPE Tokens
The Foundation wants to remove 37.11 million HYPE tokens permanently. This equals 3.71% of the total supply. These tokens are stored in the assistance fund. The fund uses trading fees from the exchange to buy HYPE tokens.
There is no private key for the assistance fund address, so it was never controlled by anyone. A hard fork would be needed to access these funds.
If the vote passes, it will establish a social agreement that no upgrades will access this fund. The vote result will be announced on December 24. The decision will be based on stake-weighted consensus.
HYPE Price Faces Key Support and Possible Targets
Hyperliquid trades just above the $26 support level on the daily chart. This level held after three days of decline. The token price has yet to fully reflect the burn vote news, which could affect the price on the result day.
If HYPE closes below $26 on the daily chart, the price might fall toward the October 10 low near $20.
Technical indicators show bearish pressure. The RSI is at 33, near the oversold area. The MACD and signal lines continue to show a downward trend.
If HYPE holds $26 and rebounds, it could target $30. The next resistance is the 50-day EMA at $34.
