Hyperliquid (HYPE) has slumped 22% from its July peak of $73, breaking a key upward trendline and signaling a cautious outlook among analysts. Michael Van de Poppe, a crypto analyst known for his market calls, advised adopting a passive stance on HYPE, noting previous similar breakdowns led prices to plunge sharply from €50 down to €15.
Van de Poppe suggested a gradual entry approach, using a dollar-cost averaging strategy if the decline continues, to reduce risk exposure.
Trader Mayne, who is active on X as Dylan Loomer, echoed this view while forecasting a possible 38% drop toward the monthly demand zone near $35. He considers buying as low as possible advantageous, though anticipates starting to accumulate before that level is reached.
Institutional Sell-off and Reduced Buybacks Hurting HYPE
The altcoin’s rally earlier in 2026 was propelled partly by demand linked to the West Asia crisis. However, that momentum faded in the second half of the year. U.S. spot HYPE ETFs, which fueled a rapid rise to a record high in June, have been experiencing sustained losses averaging $1 million daily since mid-July the longest negative stretch since their inception.
Venture capital firms like a16z and Multicoin Capital increased pressure by offloading sizable HYPE stakes, with Multicoin unstaking $120 million worth recently. This institutional dumping has weighed heavily on market sentiment.
Trading volumes have contracted sharply, dropping from a weekly $21 million to just $7 million by late July. This decline hit buyback programs hard, reducing token repurchases from 318,000 in early June to 108,000. Though daily averages of 20,000 HYPE tokens bought back may mitigate some selling, the reduced pace is a concern amid elevated ETF selling.
Market data also reveals ‘smart money’ positioning against HYPE’s rebound, with short bets exceeding $150 million. investor activity increasingly favors shorting the token amid the backdrop of ETF sell-offs and slowing buybacks.
This information does not constitute financial advice and is provided for informational purposes only.
