Hyperliquid's $1.36B Buyback Fails to Halt HYPE Price Drop Below $85

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HYPE
$79.89-1.86%
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Hyperliquid’s $1.36B HYPE buyback failed to stop the token from falling below $85. HYPE now trades near $81.20, with support at $80.26 and resistance between $83 and $85. Altcoins to watch remain under pressure as bearish momentum grows. The fear and greed index shows extreme fear, adding to the downward bias. Buybacks are funded by trading fees and USDC reserves, but a recovery remains unconfirmed.

TL;DR

  • Hyperliquid’s Assistance Fund has purchased more than 48 million HYPE tokens for approximately $1.36 billion, yet the token has fallen nearly 5% in 24 hours.
  • HYPE trades near $81.20, with technical support around $80.26 and resistance between $83 and $85.
  • Trading fees and USDC reserve income help finance the buyback mechanism, while bearish momentum indicators suggest that a recovery remains unconfirmed.

Hyperliquid’sHYPE token faces renewed selling pressure despite an extensive buyback program that has accumulated more than 48 million tokens. On October 13, HYPEtraded near $81.20 after fallingalmost 5% over 24 hours, raising questions about whether the token can reclaim $85 despite sustained protocol-funded purchases.

The decline comes as trading activity increases and technical indicators point to weakening momentum.

HYPE Price Tests Key Support As Selling Pressure Builds

Data reported on October 13 placed HYPE’s 24-hour trading range between $79.52 and $85.73, while trading volume climbed more than 59% to approximately $931.56 million. The token also remained below its late-September peak near $98, representing a decline of roughly 17% from that level.

TradingView’s daily chart placed the Supertrend indicator near $80.26, making it a key short-term support reference. HYPE briefly moved below that level during the session before recovering above it. A sustained hold could help stabilize the price, although technical support does not guarantee a reversal.

Momentum indicators present a more cautious picture. The daily Moving Average Convergence Divergence (MACD) line stood at -0.674, below its signal line at 0.700, while the histogram registered -1.373. These readings indicate that bearish momentum remains present despite the protocol’s substantial token purchases.

For a recovery toward $85, HYPE would first need to move above the $83.41 session high and then overcome resistance around $85. Higher price areas near 88–90 and 94–98 represent additional resistance references based on previous trading activity. On the downside, a sustained break below $79.50 could put the 75–77 region back in focus.

Hyperliquid’s Assistance Fund has purchased more than 48 million HYPE tokens for approximately $1.36 billion, yet the token has fallen nearly 5% in 24 hours.

Hyperliquid Buybacks Draw On Trading Fees And USDC Reserves

Hyperliquid’s official documentation explains that the Assistance Fund automatically converts its share of trading fees into HYPE. Tokens held by the fund are burned, permanently removing them from both circulating and total supply. This mechanism links the network’s trading activity to its token economics rather than relying solely on discretionary market purchases.

The protocol has also expanded its funding sources through its USDCreserve framework, activated on August 26. Under the arrangement, approximately 90% of cost-adjusted reserve yield goes to the protocol. Coinbase serves as the USDC treasury deployer, while Circle handles technical functions including minting, redemption and cross-chain transfers. Actual revenue depends on reserve balances, yields and operating costs.

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