Hyperliquid [$HYPE] has extended its losses to 22% from the July peak of $73, effectively breaking a key trendline as analysts turn defensive. According to renowned crypto analyst Michael Van de Poppe, it was time to be “passive” on the altcoin.
$HYPE has lost the uptrend unfortunately, which means that I’m going to be more passive on a potential trade. Last time this occurred, price fell from €50 to €15.
In other words, Poppe preferred more of a slow scaling if the pullback extends. Think of it as a daily average cost (DCA-ing) strategy where one allocates small amounts periodically to the altcoin.
Another analyst and trader, Dylan Loomer, popularly known as Trader Mayne on X, echoed a similar stance and projected a potential 38% pullback to the monthly demand zone near $35.
No idea if we get down to the monthly demand zone, but if we do, I think buying $HYPE as low as you possibly can is a good idea. $35 would be a gift, but I’ll start scaling in earlier than that.
In the first half of 2026, $HYPE outperformed the market and became traders’ darling, partly fueled by the early West Asia crisis. So, what happened to its bullish catalysts in H2 2026?
3 factors driving $HYPE selling pressure
First, the institutional demand from U.S Spot $HYPE that fueled the explosive rally to a new all-time high in June has faded in July.
Since mid-July, the products have remained negative for the longest time since their debut. They’ve been bleeding an average of $1M per day (~20K $HYPE) since the 10th of July.
Venture firms like a16z and Multicoin Capital (who unstaked a $120M $HYPE this week) further intensified institutional sell-offs.
Are weaker buybacks hurting $HYPE?
Besides, trading activity has slowed down since June, cutting revenue by 3x from a weekly average of $21M to $7M. Subsequently, this has impacted the pace of $HYPE buybacks by 3x, from 318K $HYPE in early June to 108K tokens in late July.
This was about 20K $HYPE on a daily average, meaning the buyback program should be enough to absorb the ETF sell pressure.
It’s likely that $HYPE is currently reacting to the Multicoin Capital sell-off headline story and broader market sentiment.
In fact, smart money’s net positioning was negative, with over $150M betting against its recovery.
Overall, traders are actively shorting the Hyperliquid [$HYPE] amid declining buybacks and ETF and VC firms’ sell-off. But some analysts believe deeper corrections could offer new discounted buying opportunities.
Final Summary
- $HYPE has dropped 22% from $73 to $57 as analysts warn that the pullback could deepen
- U.S spot $HYPE ETF sell-offs have hit $1M in weekly average, while buybacks decreased by 3x, further weighing on the altcoin’s value.