The Hyperliquid platform token HYPE dropped to $55.35 within 24 hours, recording a daily decline of 11%. Amid a pullback in Bitcoin and rising market risk-off sentiment, HYPE’s decline significantly outpaced the broader market, with a cumulative drawdown of 23.7% over the past seven days and a drop of more than a quarter from its peak of $75.48 on June 2.
The decline in futures open interest has weighed on prices.
The immediate pressure in this downturn primarily stems from the derivatives market. Reports show that HYPE futures open interest has dropped to $5.86 billion, indicating that previously established high-leverage long positions are being liquidated, rather than a concentrated influx of new short positions.
Meanwhile, spot trading volume increased by 12.5%, indicating that the market decline is not only due to funding rate changes but also reflects an increase in genuine selling pressure. Traders who had opened leveraged positions following the HYPE rally are now exiting, further amplifying the downward momentum.
It is worth noting that this pullback was not triggered by any negative events related to the Hyperliquid protocol itself. Reports indicate that the platform’s daily buybacks continue uninterrupted, and there have been no public reports of vulnerabilities, attacks, or technical failures. The current movement appears more like a liquidation of speculative positions rather than a sudden deterioration in fundamentals.
Market sentiment has simultaneously weakened.
The broader crypto market is also under pressure. The Crypto Fear & Greed Index has dropped to 15, entering the "extreme fear" zone; the total crypto market cap fell 2.24% over the past 24 hours to approximately $2.13 trillion.
Traders also reduced their risk exposure ahead of the Federal Reserve's meeting on June 16–17. CME FedWatch data shows the market assigns a 98.2% probability that rates will remain unchanged at this meeting. Against this backdrop, Bitcoin briefly approached the $62,000 level, while altcoins faced even greater selling pressure.
In addition, geopolitical tensions are increasing market volatility. Reports mention that U.S. President Trump stated that the United States will respond to Iran’s alleged downing of an American Apache helicopter near the Strait of Hormuz, further reinforcing cautious sentiment toward risk assets.
The $54 support level is being watched.
In the short term, $54 is seen as a key support level for HYPE. If the price holds this level, the market may enter a consolidation range between $54 and $65; if it breaks below, the price could decline further to the $44–$54 range.
The report also noted that if open interest stabilizes or rises, it may indicate that selling pressure is beginning to ease; conversely, if open interest continues to decline alongside falling prices, it suggests that the deleveraging process may not yet be complete.
For future price movements, the market is still watching for new catalysts that could boost platform trading activity and whether Bitcoin can reclaim $63,000. If overall risk appetite does not improve, high-volatility assets like HYPE may continue to face downward pressure.