Hyperliquid (HYPE): Fees Soared, But Coin Crashed... Why?

▲ Hyperliquid (Hyperliquid, HYPE), Cryptocurrency Decline/AI Generated Image

Hyperliquid (Hyperliquid, HYPE)'s powerful upward momentum was halted as it failed to maintain its key support level after reaching an all-time high, breaking downwards.

According to crypto media outlet U.Today on September 30 (local time), Hyperliquid fell below the technical critical line that had driven its recent rally, showing signs of its short-term bullish structure being invalidated. HYPE, which recorded an all-time high near $98 in late September, subsequently saw a massive wave of profit-taking sales, pushing it down to the $85 level. This resulted in the breakdown of the key support level between $88 and $90, which market analysts had presented as crucial for the continuation of the uptrend, raising the possibility of further price corrections.

Supply pressure from token unlock events is analyzed as the main factor weighing down investor sentiment. Starting September 29, a large-scale vesting unlock schedule, including allocations for early contributors and the team, raised concerns about an increase in circulating supply in the market. While some evaluated that the actual claimed amount might be less than the theoretical maximum, the massive volume released near the peak formed a short-term selling wall, limiting the upside price movement.

The network's fundamental indicators remain robust, leading to a growing divergence from technical indicators. In the decentralized perpetual futures exchange (DEX) sector, the number of monthly active wallets surpassed 290,000, setting a new all-time high, and protocol fee revenue also exceeded a cumulative $1.24 billion, breaking previous records. Structural buy support measures, where 99% of protocol revenue is allocated to HYPE buybacks and burning, are also in operation, but they have not fully offset short-term macro uncertainties and the impact of the token unlock.

Experts diagnosed that whether Hyperliquid can stably defend the $78 to $80 range, which acts as a short-term support level, will be key to its future trajectory. If this support breaks down, there is a constant risk of further retreat to the low $70s, while a swift recovery to $85, backed by robust on-chain trading volume, could lay the groundwork for a rebound towards breaking $100 by year-end.

[Article Key Summary]

-Hyperliquid's short-term upward momentum was damaged after it fell below a key bullish support level following an all-time high.

-Supply pressure from large-scale token unlocks on September 29 stimulated profit-taking sales.

-Despite record active wallet counts and fee revenue, defending the $80 support level will determine the direction for Q4.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*