Hyperliquid's native token HYPE is experiencing a critical consolidation phase near the $30 mark, following two failed breakout attempts above $31 earlier this week. The token has retreated to a key support battleground between $27.50 and $28.50, a zone where buyers have historically stepped in during recent volatility.
The price action reflects a broader consolidation trend that has defined HYPE for months, with the token fluctuating in a well-established range of roughly $28 to $30. This comes after a nearly 25% decline from its yearly high near $37.8, mirroring broader crypto market weakness. Analysts emphasize that holding above the $28.98 level is critical for maintaining a bullish continuation scenario, which could pave the way for a renewed attempt toward $32.28 and potentially $35.
Technical indicators present a mixed picture. A bearish MACD crossover and weakening momentum readings suggest increased selling pressure, while the Relative Strength Index (RSI) remains in neutral territory, indicating the market is not yet oversold. Fundamentally, weekly protocol revenue has recently dropped by more than 50%, accompanied by a decline in Total Value Locked (TVL). This reduced activity eases the platform's capacity for token buybacks, diminishing a previous source of deflationary price support.
Despite the pullback, on-chain activity and fundamentals show underlying strength. Notably, 31% of the protocol's volume is derived from real-world assets (RWAs) like stocks and commodities. Whale activity is also telling; the largest cohort appears positioned for another rejection at resistance, viewing HYPE's 14% year-to-date gain as a short-term spike. However, prominent accumulation continues, with BitMEX co-founder Arthur Hayes recently adding 1 million HYPE tokens, bringing his total holdings to 6.4 million.
The current sentiment suggests HYPE is walking a fine line between fading FOMO and sustained conviction. With declining volume and cautious traders awaiting clearer signals, the price action near $28-$30 is viewed as a decisive zone. The outcome will determine whether HYPE resumes its upward trend, potentially triggering a short squeeze, or enters a deeper corrective phase toward the $25-$26 support band.
