Hyperliquid's HYPE token is under pressure, currently priced at $58.78 after edging down 0.67% in 24 hours. Trading volume slipped 11% to about $343 million, with the weekly price retreating 3% according to CoinMarketCap data. Investors are closely watching whether buyers can hold critical support levels around this price.

Technical Setup Signals Liquidity Hunt, Not Decline

Crypto analyst Crypto Patel suggests that the recent pullback in HYPE reflects a search for market liquidity rather than a bearish reversal. According to Patel, the weekly chart highlights a "fair value gap" between $47 and $54 and a bullish order block from $38 to $43. Both zones align with the 0.382 and 0.5 Fibonacci retracement levels, supporting the idea that the asset is merely resetting before attempting to push higher.

Patel noted the token’s pattern of higher highs and higher lows, a classic bullish sign. He pointed to similarities with the correction phase preceding HYPE’s previous peak. If buyers defend these confluence zones, the token could retest its record highs, with $150 identified as a potential target arising from his technical analysis. However, any weekly close under the 0.618 Fibonacci retracement near $34 would invalidate this bullish thesis.

ETF Outflows Weigh on Momentum

While the technical outlook has bullish potential, market sentiment is challenged by spot ETF outflows. Data from SoSoValue reveals a daily net outflow of $1.02 million from HYPE’s spot ETF on July 23, pushing cumulative inflows below $300 million to $294.15 million in assets under management. This trend contrasts with a steady inflow earlier in the month, highlighting dwindling institutional interest.

Key ETF flow figures:

  • July 21: $698,040 outflow
  • July 17: $5.45 million outflow
  • July 22: Neutral, no net inflow or outflow

These outflows coincide with technical indicators that lean bearish for now. The Relative Strength Index (RSI) stands at 40.41, below the neutral 50 but above the oversold 30, while the Moving Average Convergence Divergence (MACD) shows negative momentum with its line at -1.785 below the signal line at -0.981. This suggests selling pressure remains in play as the market awaits a clear break on the weekly chart.

This content is for informational purposes and not a financial recommendation.