Hyperliquid has activated permissionless HIP-4 deployments on its testnet, a move that opens the door for developers to create prediction and other outcome markets. The launch, reported on July 31, represents a significant protocol upgrade, allowing fully collateralized contracts that settle within a fixed range. While the initial implementation is live, configurable fees and additional market templates will be rolled out gradually, according to the platform. The upgrade is designed to expand the DeFi capabilities available on Hyperliquid, potentially attracting more developers and users to the ecosystem.
Despite the positive development, the project’s native token, HYPE, has struggled to hold key support levels. On August 1, HYPE slipped below the $52.5 mark, a level previously identified as important. The price is now trading inside a descending channel that has guided it lower since early July. The daily candle has not yet closed, so a confirmed breakdown below $52.5 is not final. However, selling pressure continues.
Next critical support lies near $51.2, where the 0.5 Fibonacci retracement aligns with the lower boundary of the descending channel. A daily close below this confluence would be a stronger bearish signal, potentially exposing the next historical demand zone around $47. On the upside, HYPE would need to reclaim $52.5 and then push through a heavy resistance cluster between $56 and $57, which includes the upper channel boundary, the 0.382 Fibonacci level, and the 100-day simple moving average, to shift the current structure.
Analysts note that while HIP-4 adds valuable infrastructure, it has not yet created immediate demand for the HYPE token. The market appears to be waiting for concrete signs of adoption on mainnet before repricing the asset. For now, the immediate focus remains on whether buyers can defend the $51 area.
