• HYPE token price analysis shows an 18% plunge to $31.90, wiping out $3 billion in market cap as selling pressure intensifies.

• The broader crypto market has corrected sharply, with Bitcoin at a seven-month low of $81,386 and Ethereum down 10% to $2,650.

• Total market cap contracted 10.88% to $2.78 trillion, influenced by Fed rate uncertainties and post-halving dynamics; HYPE’s RSI hits oversold at 24, signaling potential accumulation.

Discover the latest HYPE price drop analysis: 18% decline to $31.90 amid market correction. Explore causes, Hyperliquid’s resilience, and future outlook for crypto investors now.

What is causing the recent HYPE price drop?

HYPE token price drop is primarily driven by a widespread cryptocurrency market correction, with the token falling 18% over the last 24 hours to approximately $31.90 from a weekly high near $42. This movement aligns with broader pressures on major assets like Bitcoin and Ethereum, exacerbated by uncertainties surrounding Federal Reserve rate decisions and post-halving profit-taking. Trading volume for HYPE surged 84% to $745 million, reflecting heightened selling activity as per data from market trackers.

How has the broader crypto market influenced Hyperliquid’s HYPE token?

The cryptocurrency market has seen significant volatility, with the total capitalization shrinking by 10.88% to $2.78 trillion in the past day. Bitcoin reached a seven-month low of $81,386, while Ethereum declined nearly 10% to $2,650, as investors react to macroeconomic signals including potential delays in Fed rate cuts. For Hyperliquid’s HYPE, this environment has amplified selling pressure, leading to a $3 billion market cap reduction and positioning the token 45% below its September all-time high of $59.39. Technical indicators like the Relative Strength Index (RSI) at 24 suggest oversold conditions, potentially mirroring historical bottoms for high-growth altcoins. Analysts from platforms like CoinMarketCap note that while daily protocol revenue remains strong at $3-4 million—mostly directed to buybacks and burns—external factors like the upcoming November 29 linear unlock could introduce $15-18 million in daily sell pressure, challenging the token’s recovery.

The drop in HYPE price aligns with a broader market correction in leading crypto assets, with Bitcoin and Ether falling nearly 10% in the past 24 hours.

Key Highlights

• HYPE plunged 18% in 24 hours, dropping to ~$31.90 from a weekly high near $42, wiping out nearly $3 billion in market cap, with trading volume surging 84% to $745M amid heavy selling pressure.
• The broader crypto market correction intensified, with Bitcoin hitting a seven-month low of $81,386, Ethereum down ~10% to $2,650, and total crypto market cap contracting 10.88% to $2.78T, driven by Fed uncertainty and post-halving profit-taking.
• Bull vs. bear debate on HYPE’s future: Bulls see this as a final shakeout in an “accumulation phase,” while bears warn of a topping pattern, falling market share and massive daily sell pressure from the upcoming Nov 29 linear unlock starting at $15–18M/day.

The recent volatility in the world of cryptocurrency has brought the spotlight to various altcoins like Hyperliquid’s native token, HYPE. Over the past 24 hours, HYPE has plunged approximately 18%, trading at around $31.90 at the time of publishing.

This sharp decline—down from a weekly high near $42—has wiped out nearly $3 billion in market capitalization, leaving the token’s total market cap hovering at $10.76 billion. The trading volume for the token spiked to $745 million in the last 24 hours, up 84% from the prior day, as per CoinMarketCap data.

For traders, it’s a gut-wrenching reminder of crypto’s unforgiving nature: one moment you’re riding the wave of decentralized finance (DeFi) innovation, the next you’re watching red candles stack up.

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Broader market correction

The drop aligns with a broader market correction, where risk assets are under siege. Bitcoin (BTC), the bellwether of the space, tumbled to a seven-month low of $81,386 late today. Ethereum (ETH), meanwhile, has shed nearly 10% in the same period, dipping to $2,650 amid fading momentum in layer-1 narratives.

The total crypto market capitalization has contracted by 10.88% to $2.78 trillion, erasing $2.8 billion in value. Analysts point to macroeconomic headwinds—the uncertainty around Fed’s rate cuts in December and profit-taking after a lackluster post-halving rally—as the primary culprits.

Yet, for HYPE specifically, the timing feels acutely personal. The token has now retraced 45% from its all-time high of $59.39 set in September, entering a zone that technical traders are calling the “final accumulation phase.”

Source: TradingView

TradingView chart reveal HYPE breaking the key support levels at $35-$36 range and the next major support currently sits in the $30-$31 range. The relative strength index (RSI) dipping to oversold levels at 24—echoing bottoms in past cycles for high-growth altcoins.

Is the HYPE price drop a temporary pullback or a bearish signal?

Market observers are divided on whether this 18% HYPE price drop represents a healthy correction or the onset of a deeper downturn. On the bullish side, the token remains up 380% from its May lows, supported by Hyperliquid’s robust fundamentals including $3-4 million in daily revenue funneled into buybacks and burns. Weekly trading volume on the platform exceeds $10 billion, with open interest only declining 8% during the sell-off, indicating sustained user engagement rather than exodus. On-chain data shows whales accumulating below $33, suggesting confidence in an upcoming rebound as Bitcoin stabilizes above $81,000 and the initial token unlock effects are absorbed.

Conversely, bears highlight concerning trends: HYPE has fully retraced gains from its Robinhood listing, with perpetuals market share slipping from 72% to under 55% in recent weeks and daily active traders down 22% following the POPCAT bad-debt event. The November 29 linear unlock introduces substantial overhang, potentially flooding the market with $15-18 million in tokens daily for two years—outpacing current buyback capacity on many days. Data from DeFiLlama underscores Hyperliquid’s TVL at $4.32 billion, yet this hasn’t insulated HYPE from broader sentiment shifts. Expert commentary from sector analysts, such as those cited in recent reports, emphasizes monitoring on-chain metrics for signs of capitulation, with RSI at oversold levels offering a technical bounce opportunity if macroeconomic conditions improve.

Hyperliquid’s gigantic rise

Hyperliquid’s ascent earlier this year was nothing short of meteoric, positioning HYPE as a cornerstone of the perpetual DEX boom. Launched in late 2024 via one of crypto’s most lucrative airdrops—distributing 31% of supply to just 94,000 eligible users—the platform bootstrapped its way to dominance without venture capital fanfare.

By mid-2025, Hyperliquid had processed over $1.14 trillion in cumulative trading volume, outpacing rivals like GMX and dYdX in market share, which peaked at over 70% of the perp DEX sector. Its own Layer-1 blockchain, HyperEVM, boasts near-instant settlements and up to 50x leverage, attracting a daily active user base exceeding 100k and total value locked (TVL) now sitting at $4.32 billion, as per DeFiLlama data.

Traders elevates HYPE’s value proposition to its tight coupling to platform economics. An astonishing 97% of Hyperliquid’s fees—annualized at $1.2 billion—flow directly into HYPE buybacks and burns, creating a deflationary flywheel. In Q3 alone, the protocol generated $106 million in revenue, surpassing Ethereum and Solana combined in some metrics, with $25 million weekly repurchases removing tokens from circulation.

Moreover, recent innovations around HIP-3 (permissionless perpetual markets via HYPE staking) and the launch of USDH stablecoin have deepened liquidity on the protocol, potentially routing 95–100% of yields back to HYPE holders.

Also read: Monad Premarket Perps Drop 20% Ahead of Mainnet Launch

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TAGGED:Hyperliquid (HYPE)Price Analysis

Frequently Asked Questions

What factors are driving the current HYPE token price drop in 2025?

The HYPE token price drop in 2025 is largely attributed to a market-wide correction, with Bitcoin and Ethereum declines amplifying sell-offs. Key drivers include Fed policy uncertainties, post-halving profit-taking, and the impending November 29 linear unlock adding daily sell pressure of $15-18 million. Despite this, protocol revenues support long-term buybacks, per DeFiLlama metrics.

How might Hyperliquid’s platform innovations impact HYPE’s future performance?

Hyperliquid’s innovations like HIP-3 for permissionless markets and the USDH stablecoin are set to enhance liquidity and route yields directly to HYPE holders, boosting token utility. With 97% of $1.2 billion annualized fees funding buybacks, these features could drive deflationary pressure and recovery post-correction, as evidenced by sustained $10 billion weekly trading volumes.

Key Takeaways

• HYPE’s 18% drop to $31.90: Reflects broader market correction, with oversold RSI at 24 indicating potential buying opportunities.
• Hyperliquid’s resilience: $4.32 billion TVL and $106 million Q3 revenue highlight strong fundamentals despite external pressures.
• Monitor unlocks and metrics: November 29 event introduces sell pressure; track on-chain whale activity for rebound signals.

Conclusion

In summary, the recent HYPE price drop underscores the volatile interplay between altcoin dynamics and broader cryptocurrency market trends, influenced by macroeconomic factors and platform-specific events like the linear unlock. Hyperliquid’s HYPE token, backed by impressive revenue streams and deflationary mechanisms, maintains a solid foundation for potential recovery. As the sector navigates Fed uncertainties, investors should focus on technical supports around $30-31 and protocol innovations for informed positioning moving forward.