Hyperliquid's HYPE token has declined approximately 7% over the past week, trading near $73 on Friday. Despite this drop, the token is holding up better than major cryptocurrencies during the latest market downturn, with Bitcoin losing more than 9% and Ethereum dropping nearly 14% over the same period.
HYPE has lost roughly a quarter of its value since rallying above $95 in late October, a surge partly driven by excitement around a partnership involving Trade.xyz and Intercontinental Exchange, the parent company of the New York Stock Exchange.
Why HYPE Is Outperforming
Research from Bitunix suggests HYPE's relative strength may be tied to derivatives market activity. The token's notional open interest on Hyperliquid declined from $1.21 billion to $1.07 billion, a drop of approximately 12%. By comparison, Ethereum's open interest on the same platform fell more than 52% over a similar timeframe.
Open interest measures the total value of outstanding futures positions. A smaller decline in HYPE's open interest indicates traders have maintained greater exposure to the token despite falling prices, though price changes also affect the dollar value of positions themselves.
Positioning data revealed an early HYPE whale holding over $40 million in unrealized profits as of November 12. Hyperliquid Strategies held 38.52 million HYPE, representing approximately 16% of the circulating supply, as of September 30.
Broader Market Pressure
The wider cryptocurrency market has faced significant headwinds. Bitcoin dropped below $70,000 on Friday, trading near $68,700, while Ethereum slipped toward $1,930.
Institutional withdrawals have intensified concerns. US spot Bitcoin ETFs recorded $284.1 million in outflows on November 12, marking their sixth consecutive negative session. Since October 30, these ETFs have experienced approximately $2.8 billion in total withdrawals. Ethereum ETFs also lost $70.5 million on November 12.
Persistent US inflation has strengthened expectations of further Federal Reserve tightening. Falling prices have also triggered leveraged liquidations, accelerating the broader downturn.
Key Price Levels and Risks
Several technical levels are important for traders monitoring HYPE. The $70 price point represents an immediate level to watch, with the 200-day moving average near $68.60 offering another potential support area. A deeper decline could threaten leveraged long positions clustered around $65.50.
Short-term recovery would require HYPE to move above $74.40, with further resistance in the $76–77 range. WhaleRadar data showed $641 million in HYPE shorts against $515 million in longs among tracked large traders on November 13, indicating meaningful bearish positioning.
While HYPE's relative strength provides some encouragement, sustained recovery will depend on fresh buying demand and whether existing support levels hold amid continued market pressure.
