Hyperliquid’s HYPE token has come under pressure after a strong run, falling around 7.5% over the past week as short-term technical indicators turned bearish.
HYPE was trading near $78.70 on Sep. 16 after opening around $83.55 on Sep. 10. The decline comes shortly after the token reached a record high near $89 earlier this month.
While buyers have continued to defend important support levels, the token remains below key resistance on the 4-hour chart, leaving the short-term outlook under pressure.
HYPE price pulls back from record highs
HYPE’s latest correction follows a powerful rally that pushed the token to an all-time high near $89 in early September.
However, buyers struggled to maintain momentum above the $88 level. Several attempts to hold those highs failed, allowing sellers to push the price back below $82.
On Sep. 16, HYPE briefly fell toward $76 before recovering to around $78.70.
The rebound suggests that buyers are still active near the lower end of the recent trading range, but the token has yet to recover the technical levels needed to confirm a stronger bullish reversal.
The pullback also came amid broader legal headlines involving two former Robinhood engineers.
Federal prosecutors accused the individuals of using confidential listing information to trade perpetual futures on Hyperliquid ahead of public announcements.
According to the allegations, each defendant earned more than $50,000 from the trades.
Importantly, the complaints focus on the conduct of the individuals and do not accuse Hyperliquid or its developers of participating in the alleged activity.
Supertrend keeps the short-term outlook bearish
The 4-hour chart currently shows HYPE trading below its Supertrend indicator.
Supertrend resistance is positioned near $82.30, which means sellers remain in control of the short-term structure unless the token can move above that level and hold it as support.
The 4-hour Relative Strength Index stood at 47.77, while its RSI-based average was around 45.16.
These readings place momentum close to neutral territory after HYPE recently moved closer to oversold conditions.
Price action has also produced a series of lower highs since the Sep. 7 peak, reinforcing the current bearish setup.
A recent rebound toward $80 failed before reaching the Supertrend level, suggesting sellers are still using price rallies as opportunities to reduce exposure.
The $80 level is now the first major test for buyers.
If HYPE can reclaim and hold above $80, the next resistance zone sits between $82.18 and $82.30. This area is particularly important because it combines the daily Bollinger Band midpoint with the 4-hour Supertrend resistance.
A convincing move above that zone could improve short-term momentum and open the door toward $84.30.
Beyond that, the upper Bollinger Band near $88.53 would become the next major target.
The previous record region around $89 to $90 would only come back into focus if HYPE successfully clears those intermediate resistance levels.
Bollinger Band support remains important
The daily chart presents a slightly stronger picture than the shorter 4-hour timeframe.
HYPE remains above the lower Bollinger Band at approximately $75.83, although it is still trading below the middle band near $82.18.
Daily RSI stands around 50.65, down from overbought levels reached during the early-September rally.
Its RSI average remains higher at roughly 57.48, indicating that current momentum has weakened faster than the broader recent trend.
For traders watching downside risk, the $75.83 level is particularly important.
A daily close below this support could signal a deeper technical breakdown.
If that happens, the next notable support area sits near $72, where HYPE previously consolidated before its late-August rally.
A larger correction could then bring the $68 to $70 region back into consideration.
Despite the recent weakness, the broader chart still shows a pattern of higher lows extending from the August bottom near $51.
That means the larger recovery structure remains intact for now.
HYPE would likely need to lose support in the mid-$70 range before the wider bullish recovery comes under more serious pressure.
On the other hand, holding above $75.83 and eventually reclaiming $82.30 could support a period of consolidation rather than a deeper decline.
Liquidation data highlights the $80 area
Liquidation data also suggests that the $80 region could play an important role in HYPE’s next move.
CoinGlass’ 24-hour liquidation heatmap shows a large concentration of liquidity between approximately $78.40 and $78.90, close to the token’s current price.
Another significant cluster sits between roughly $79.70 and $80.50.
These zones can sometimes attract price because heavily leveraged positions tend to build around crowded trading levels.
However, the heatmap does not mean those positions have already been liquidated. Instead, it highlights areas where forced liquidations could increase if the market moves into those price zones.
The strongest nearby liquidity above current prices appears near $80.30.
A move through that level could create additional upward momentum if short positions begin to close, potentially allowing HYPE to test $81 and $82.
There is also notable liquidity below the market around $75 to $76.
This closely matches the lower daily Bollinger Band and reinforces that region as an important support area.
If HYPE falls below $77, the token could briefly move toward this lower liquidity zone before buyers attempt another recovery.
HYPE token burns may help reduce selling pressure
Hyperliquid’s token buyback and burn mechanism continues to provide another source of support.
Onchain Lens reported that Hyperliquid purchased and burned 36,720 HYPE tokens during a 24-hour period.
The tokens were worth approximately $2.84 million, with a volume-weighted average purchase price of around $77.31.
According to the report, lifetime burns have reached roughly 48.67 million HYPE.
At current reported valuations, that represents approximately $3.78 billion in tokens and about 4.87% of HYPE’s maximum supply.
The platform also reportedly generated about $2.14 million in rolling 24-hour fees, with approximately $2.07 million directed toward HYPE-related revenue.
Token burns can reduce available supply and potentially ease part of the selling pressure over time.
However, current price action shows that the buyback mechanism has not yet been enough to restore bullish short-term momentum.
What comes next for HYPE price?
HYPE is currently trading between an important support zone and a major resistance area.
On the downside, traders are watching $75.83 as the key level protecting the broader recovery.
A sustained move below that level could expose $72 and potentially the $68 to $70 region.
On the upside, buyers first need to reclaim $80 before attempting to break the stronger resistance between $82.18 and $82.30.
A confirmed move above $82.30 could improve the short-term structure and potentially open the way toward $84.30 and $88.53.
For now, HYPE remains under short-term bearish pressure, even though the broader recovery structure has not yet fully broken down.
