Hyperliquid's HYPE has broken below the $75 support level that analysts had flagged as a key threshold, according to AMBCrypto. The token slipped under that mark following a 2% intraday decline, with one analyst pointing to $64 as the next level to watch and $53 after that.
The breakdown comes as HYPE exits what one analyst described as a rectangular consolidation pattern spanning the past two months. With the token already trading below $75, the technical picture has become more bearish.
Whale transfer adds to selling pressure
Lookonchain highlighted that a whale unstaked 512,010 HYPE tokens worth approximately $39.3 million and deposited them into FalconX, possibly to sell. The combination of weakening price action and the large transfer is adding to bearish pressure on the token.
Binance reopens withdrawals
Binance has reopened withdrawals of HYPE tokens following the $6.3 billion hack, allowing users to move HYPE off the exchange. If withdrawals pick up, exchange balances could decline, potentially tightening available supply and creating conditions for a supply squeeze.
With overall market sentiment in extreme fear, an unexpected reversal could trigger a short squeeze, potentially setting HYPE up for a repeat of its late-July rally, according to the report.
Buybacks and historical precedent
On-chain data from On-chain Lens shows Hyperliquid burned $1.06 million of HYPE in the past 24 hours through a buyback process in which HYPE is purchased using protocol revenue and removed from circulation. Hyperliquid's revenue has risen by 20% in under 24 hours, adding nearly $290,000, which could translate into larger buybacks if the pace continues.
HYPE's historical price action also offers a bullish counterpoint. After dipping back to $50 in mid-Q2, the token moved into price discovery territory and hit an all-time high of almost $95. With a similar technical setup starting to take shape, another rally remains possible, the report noted.
The competing signals leave the token at a crossroads: a drop below $75 and the whale transfer point to further downside, while buybacks and the reopening of Binance withdrawals could reduce available supply and support a recovery.
