Hyperliquid's HYPE token fell below the $80 mark, a week after reclaiming the level as support. The decline comes as institutions continue to sell the altcoin, even as the team attempts to counter selling pressure through token burns.
Team Distribution Adds to Selling Pressure
In the last 24 hours, HyperLabs distributed over 179K HYPE, worth about $14.50 million, to six team members' wallets. The distribution was uneven, and the tokens were unstaked about two days prior. These wallets are now being watched for potential selling pressure.
Token Burns Provide Counterweight
The protocol's burn mechanism offered some offset to the new supply. Over 21K HYPE, worth approximately $1.64 million, was bought and burned at an average price of $77.93.
Regulatory Ambitions in the U.S.
Meanwhile, a subsidiary of Hyperliquid Strategies Inc. (HSI) filed an application with the U.S. Commodity Futures Trading Commission (CFTC) to become a Futures Commission Merchant. At the time of writing, the filing was still awaiting approval.
If approved, U.S. clients could trade perpetual futures on a regulated platform, though no definitive timing was provided. HSI reported $620.6 million in profits for the third quarter of this year.
Price Action and Technical Indicators
On the charts, HYPE entered a downtrend while still confined to a sideways range. After Paradigm's unstaking, the altcoin fell to around $80 and broke down the support, establishing a low of $76 before a short pullback. At press time, HYPE was trading toward the broken support at $80, potentially for a retest.
Technically, bears appeared to be in control. The Chaikin Money Flow (CMF) showed capital flight with a reading of -0.19, reinforced by the Directional Movement Index (DMI), whose three main lines all pointed south.
Outlook
HYPE has been facing conflicting signals. Institutions have been unstaking despite looming regulatory clarity. The token could hold above $75, a support level in place for the last two months, if bullish signals prevail. Otherwise, a breakdown would set a precedent for demand zones at $70, $60, or lower.
