HYPE Price Dives to $50 as Treasury Buying Fades

Hyperliquid's price has dropped to $50 after a recent rally that saw it climb above its fundamentals, according to Blockworks Research analyst Shaunda Devens. The token's price surge was driven by treasury buying and momentum traders, but this trend has now reversed.

Devens notes that the current valuation of Hyperliquid is 'more realistic' than its previous peak. He attributes this decline to a lack of fundamental support for the token's price movement.

The treasury's holding of close to 10% of HYPE's circulating supply is still significant, but it has not been enough to prop up the token's price in the face of selling pressure. Devens also points out that Hyperliquid's revenue has declined significantly since last year, with July revenue down to $43 million from $92 million in the same month a year earlier.

Until there is a clear accumulation signal, such as sustained buying or exchange inflows, the direction of HYPE's price remains uncertain. Currently, data suggests that more HYPE is leaving exchanges than entering them, which could be indicative of profit-taking at higher prices.