Hyperliquid Price Drops After Reaching Record High
Hyperliquid (HYPE) fell about 2.5% to just under $54 on Thursday. The token hit a record high of $58.78 recently. This drop follows a 25% price rise since September 1. Traders are taking profits after the strong rally. The market looks overheated, causing the correction.
DeFi TVL and Stablecoins Market Cap Rise on Hyperliquid
Hyperliquid’s Total Value Locked (TVL) in DeFi grew sharply. It rose from around $330 million on April 1 to $2.72 billion by Thursday. TVL measures the total coins locked in smart contracts on the platform. This growth shows strong investor confidence in Hyperliquid.
Higher TVL means fewer tokens are available to sell. This can support a steady price increase for HYPE. Investors lock their tokens to earn staking rewards, reducing selling pressure.
The stablecoins market cap on Hyperliquid also increased. It reached $5.83 billion, up 65.9% from $1.99 billion on April 1, according to DeFi Llama data. Hyperliquid plans to launch USDH, a native stablecoin. USDH will compete with USDC and USDT. A larger stablecoin market can attract more traders and boost HYPE demand.
Technical Analysis Shows Possible Further Decline
After reaching $58.78, HYPE faces selling pressure. The Moving Average Convergence Divergence (MACD) on the 4-hour chart shows a sell signal. This happens when the blue MACD line crosses below the red signal line. It suggests traders may reduce holdings.
The Relative Strength Index (RSI) dropped to 56 from a high of 78. This indicates weakening bullish momentum. Key support levels are $51.88, $50.23 (50-period EMA), and $48.12 (100-period EMA). If buyers step in at these points, the price could rise again toward a new high.
