Hyperliquid’s native token, HYPE, has seen a dramatic reversal after months of strong momentum—falling out of the coveted Top 20 cryptocurrencies by market cap. The sharp decline has triggered widespread debate among analysts, with many warning that a further 25% downside may still be ahead if current trends persist.
With broader market weakness and profit-taking pressure weighing on high-beta assets, HYPE’s sudden correction is now a focal point for investors assessing whether the dip represents a temporary setback or the beginning of a deeper cycle.
HYPE Loses Top 20 Spot After Sharp Market Correction
Hyperliquid has been one of the fastest-growing ecosystems in the perpetual futures trading sector, but the recent sell-off has pushed its market cap below several competing assets. According to market trackers, the decline was accelerated by a combination of:
- Profit-taking from early adopters
- Reduced trading volume across alt markets
- Macro uncertainty affecting risk assets
While HYPE had surged earlier in the year thanks to its strong branding and community-driven governance, the current retracement marks its steepest correction since launch.
Analysts Warn: A 25% Downside Still Possible
Technical analysts are split on whether HYPE has bottomed. Many point to several bearish indicators:
1. Weakening Support Levels
Key support zones broke down quickly, signaling fading buying interest.
2. Slide Below Long-Term Trendlines
HYPE has dropped under its 50-day and 100-day moving averages, often seen as precursors to deeper corrections.
3. Derivatives Market Cooling
Open interest is down significantly, suggesting traders are pulling back rather than buying the dip.
Some analysts argue that if market sentiment fails to stabilize, another 20–25% decline could occur, especially if Bitcoin remains volatile. However, others believe HYPE’s fundamentals remain strong enough to recover once liquidity returns to altcoins.
Could Hyperliquid Stage a Comeback?
Despite the correction, Hyperliquid still enjoys a robust user base, high on-chain activity, and strong positioning within the decentralized derivatives market. Long-term supporters note that:
- Institutional interest in perpetual DEXs is rising
- HYPE’s deflationary tokenomics remain intact
- Ecosystem expansion continues through new product integrations
If trading volume rebounds or Hyperliquid rolls out new incentives, analysts say the token could reclaim its lost ground quickly.
Conclusion: Volatility Reigns, but Fundamentals Still Matter
HYPE’s drop out of the Top 20 highlights how quickly sentiment can shift in a crowded altcoin market. While a further decline remains possible, the project’s strong fundamentals and expanding ecosystem leave the door open for a recovery. For now, traders should monitor liquidity, volume, and Bitcoin’s broader market direction as key indicators of HYPE’s next move.
