Arthur Hayes, founder of BitMEX, has warned that Hyperliquid's HYPE token may underperform Ethereum (ETH) and Zcash (ZEC) as competition among on-chain perpetual futures platforms intensifies. Hayes acknowledged that Hyperliquid has shown genuine demand in the perpetual DEX market, but he argued the risk-reward profile for HYPE has weakened in an increasingly crowded sector. The former BitMEX chief said he previously set ambitious price targets for HYPE, but has since liquidated his holdings in favor of what he views as more reliable assets such as ETH and ZEC.
Market data on October 23 showed HYPE near $78.17 on Coinbase after opening at $80.64 and dipping to $77.69. The token is testing key support near $77.60, a level that has already been touched multiple times. HYPE sits roughly 20% below its late September top near $98, with resistance between $82.50 and $85.80. A loss of $77.60 could open the way toward $75, followed by the longer-term average near $65.50. The RSI near 40 suggests weak momentum, while low volume indicates limited conviction from either side.
Bitcoin traded near $81,500 after being rejected around $84,000. The $80,000 area remains the critical support, with resistance near $84,300 and then $87,000. Monero (XMR) stood out as one of the strongest charts, trading near $629 after breaking above its September peak near $635, with upside targets at $656 and $700. Stellar (XLM) slipped below $0.18, trading near $0.1777, with support at $0.172.
Key takeaway: Hayes's shift away from HYPE and the token's repeated test of $77.60 support highlight growing caution around Hyperliquid, while ETH and ZEC are being positioned as more defensive alternatives in the current market environment.
