HyperLiquid (HYPE) Price Fails to Recover From 30% Loss After HyperEVM Mainnet Launch

Key Takeaways

• Hyperliquid has launched the HyperEVM to enable transfers between the spot and derivatives market.
• While HYPE will act as the native gas token, the price fails to react positively to the development.
• Despite rising selling pressure, HYPE’s price risks extending its correction unless something changes.

As Hyperliquid (HYPE) price surged in December, holders anticipated a rally toward $50. However, with broader market conditions failing to improve, HYPE struggled to maintain its outperformance.

This downturn has led to a 30% drop from its peak, erasing much of the wild gains from the final quarter of 2024. Nevertheless, the project announced the launch of HyperEVM on Mainnet today.

This upgrade raises an intriguing question: Can HYPE replicate the frenzy it experienced last year?

HYPE Volume Rises, But It’s Not Enough

The HyperEVM is an  Ethereum Virtual Machine integrated into the Hyperliquid ecosystem. According to the Hyper Foundation, the Mainnet launch is a major step toward transactions between spot and perpetual transfers on the layer-1 derivatives trading platform.

“The HyperEVM is live. This is a major step toward the vision of housing all finance by bringing general-purpose programmability to Hyperliquid’s performant financial system,” The foundation disclosed .

While HyperEVM offers other functionalities, the team has confirmed that HYPE will serve as the native gas token. Although this development is seen as positive, it failed to positively impact HYPE’s price.

In the last 24 hours, HYPE’s price has dropped by 7.50%. However, while the price fell, on-chain data from Santiment showed that the volume surged.

As of this writing, the volume surpassed $250 million for the first time since Feb. 5. Typically, a rise in volume indicates increased interest in a cryptocurrency.

Most time, this foreshadows a price increase. But in HYPE’s case, it is different as rising volume alongside falling price indicates strength to the downtrend.

Therefore, if selling pressure increases, as it has lately, HYPE’s price could further decline.

HYPE Price Analysis: Decline to Continue

On the 4-hour chart, CCN observed a bearish engulfing candlestick, which was key in pushing HYPE’s price below $24. This candlestick ensured the token could not hold on to the $25.21 support.

Amid this decline, the Moving Average Convergence Divergence (MACD) has dropped to the negative zone. Since the MACD crossed below the zero line, it means that the momentum around HYPE is bearish.

Furthermore, the position of the Awesome Oscillator (AO) aligns with that of the MACD. If this trend continues, HYPE’s price is unlikely to bounce toward $35.

Instead, the next target for the altcoin could be around the 0.236 Fibonacci retracement at $21.98. If demand for the token fails to improve, this downturn could worsen, and HYPE might decline below $20.

Alternatively, HYPE’s price might retest the $25.21 support if buying pressure increases. If validated, this could drive the crypto’s price higher, with a possible run toward $28.45.