Hyperliquid Price Slumps Amid Institutional Selling and Upgrade Uncertainty

Hyperliquid's price has been trending downward due to a combination of factors. One major contributor is institutional selling, with Bitwise transferring another 117,917 HYPE tokens worth $7.05 million to Coinbase. This follows similar exchange deposits over the past few weeks, which have kept buyers on the sidelines. The uncertainty surrounding Hyperliquid's proposed HIP-3 upgrade has also weighed on market sentiment. The proposal would introduce optional KYC and allowlist functionality for deployers, but some believe it moves away from the permissionless model that fueled the protocol's early growth.

Staking-related fears have also unsettled the market, with reports of significant staking withdrawals by early investors contributing to profit-taking after HYPE's strong rally earlier this year. Broader risk appetite across crypto has softened amid ongoing macroeconomic uncertainty, limiting buyers' willingness to step into volatile altcoins. The combination of these factors has amplified selling pressure at a time when market confidence was already fading.

Hyperliquid's price analysis suggests that the token has remained trapped inside a descending channel, printing a sequence of lower highs and lower lows. The $50-$52 region represents the market's most critical support, aligning with both the 200-day EMA and a historical demand zone. If buyers fail to defend this level, HYPE could extend its correction toward the $35-$40 range.