HYPE Token Under Pressure Amidst Technical Downturn
The HYPE token is currently experiencing significant selling pressure, leading to a sharp price decline and increased caution among cryptocurrency traders and analysts. Technical indicators suggest potential for further downside, particularly as market participants await greater clarity regarding token unlocks and the overall fundamental health of the project.
The $HYPE token has fallen below crucial technical levels, attracting heightened attention from traders. Key Fibonacci retracement zones, specifically the 0.618 level situated near $34, are being closely monitored.
An analysis from Altcoin Sherpa highlighted the token's breach of major support levels, warning of the possibility of continued declines. This price correction follows earlier peaks, with $HYPE having reached $59.39 in September 2025 before commencing its downward trend.
Following its peak, the token began a downward trend, and current market conditions indicate sustained weakness. The Relative Strength Index (RSI) is presently below the 40 mark, a threshold often indicative of oversold market conditions for an asset.
Technical traders are observing the price range between $25 and $28 as a potential area of interest, although many remain hesitant. Sentiment is being influenced by uncertainty surrounding future token unlocks and a substantial pool of unrealized profits.
Airdrop Distributions and Recent Price Movements Elicit Varied Responses
Since the Hyperliquid airdrop occurred in November 2024, early participants have received more than 300 million tokens, valued at approximately $1.2 billion at the time. Following its initial trading launch at $3.20, $HYPE experienced a rapid ascent, capturing the interest of both institutional and retail investors.
StrongHedge shared an additional technical review of $HYPE, noting a rebound to $31.40 after the recent significant drop. This recovery represented a 4.76% increase in price. However, the current price remains below its previous all-time high, a level often considered a critical support that has now transitioned into resistance.
StrongHedge characterized the prevailing fear, uncertainty, and doubt (FUD) related to the airdrop as typical market behavior, often followed by short squeezes. While the market is attentive to signals from large token holders and ongoing project developments, volatility remains a prominent factor. Traders are actively managing their risk exposure, particularly given the ongoing concerns about liquidity and the unclear timelines for token unlocks.