Hyperliquid (HYPE) Plunges for Two Consecutive Days! ETF Funds Halt, $84 Support Line Threatened

▲ Hyperliquid (Hyperliquid, HYPE), cryptocurrency decline/AI generated image ©

Hyperliquid (HYPE) is rapidly giving back its gains from last week's surge past $98, and is now facing a test of the critical $84 support line. With institutional capital inflows virtually halted, market attention is shifting to tokenized assets like Quant and Ondo, and technical indicators are also turning bearish, increasing the likelihood of further correction.

According to investment media FXStreet on September 29 (local time), HYPE traded below $86 on Tuesday, following a more than 5% drop the previous day and an approximately 2% decline on Tuesday. As the correction continues from last week's high of $98.03, Hyperliquid-related Exchange Traded Funds (ETFs) saw no net inflow on Monday. While $9.25 million flowed in last week, institutional demand has stalled again, raising the possibility that September's monthly fund flow will end in net outflows.

According to SoSoValue, despite HYPE ETFs recording weekly net inflows for two consecutive weeks, they have shown a net outflow of $1.83 million so far in September. Compared to the $66.33 million in net inflows in August, institutional demand has significantly slowed. In contrast, this week, Quant (QNT) and Ondo (ONDO) rose, driven by tokenized bank deposits and tokenized portfolio strategies, respectively, showing a trend of market interest and capital shifting towards tokenized assets.

Technically, HYPE's short-term correction pressure is also increasing. On a 4-hour chart, the price has fallen below the 50-period Exponential Moving Average (EMA) of $90.77 and the 100-period EMA of $88.81. However, it is still above the 200-period EMA of $84.40, which acts as a trend support line. The Relative Strength Index (RSI) has dropped to 32, close to the oversold zone, and the Moving Average Convergence Divergence (MACD) has also moved into negative territory, indicating a prevailing selling pressure.

If the decline continues, the $84 level will be the biggest watershed. The 200-period EMA at $84.40 and the low of $83.56 from four days ago form a critical support zone. A clear break below this price range suggests a potential further decline to the August 22 low of $77.02. Given the rapid retreat from the recent high of $98.03, whether this zone can be defended will determine if the correction expands.

For a rebound, HYPE needs to recover the 100-period EMA at $88.81 and the 50-period EMA at $90.77. A return above these two moving averages would revive the short-term uptrend, opening up the possibility of retesting $98.03. However, the slowdown in ETF fund inflows, the shift in market interest to tokenized assets, and weakened technical momentum are simultaneously acting as headwinds. Therefore, the defense of the $83.56-$84.40 support zone is considered a key variable determining HYPE's next direction for now.

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