Hyperliquid Price Drops from Record High
Hyperliquid (HYPE) is correcting after reaching a record high of $59.43. On Monday, the token traded at $49.29. The price shows weakness amid volatile market conditions. The next key support level is at $40.00, which could be tested if the decline continues.
Large Token Unlocks Begin in November
Starting November 29, 237.8 million HYPE tokens will unlock over 24 months. This information comes from Maelstrom Fund, citing DefiLlama data. The unlocks could add nearly $500 million worth of tokens to the market each month, based on a $50 token price.
- Hyperliquid’s maximum supply is 1 billion HYPE tokens.
- About 334 million tokens are currently in circulation.
- Total value locked (TVL) in Hyperliquid is $2.35 billion, down from a peak of $2.79 billion.
Futures open interest (OI) remains high at $2.35 billion, showing strong trader interest. However, if the price keeps falling, traders might shift to a bearish outlook and reduce their positions.
Technical Analysis: Support Levels and Market Sentiment
Hyperliquid is holding near its 50-day Exponential Moving Average (EMA) at $48.43. This level acts as immediate support after an 18% drop from the record high. The Relative Strength Index (RSI) has fallen to 44, indicating weakening momentum.
The Moving Average Convergence Divergence (MACD) shows a sell signal after the blue line crossed below the red signal line. This suggests more downside risk if the trend continues.
- Key supports are the 50-day EMA at $48.43 and the 100-day EMA at $43.93.
- If selling pressure increases, the price could fall to $40.00, last tested on August 22.
- Buy-the-dip moves could push the price back above $50.00, signaling a possible medium-term rally.
