HYPE Plunges 18% Amid Market Carnage: Buy-the-Dip Opportunity or Warning Signal?

HYPE token takes a brutal 18% haircut as crypto markets bleed red—but seasoned traders see potential gold in the rubble.

The Great Crypto Shakeout

Another day, another market massacre. HYPE joins the crypto slaughterhouse with an 18% nosedive that's either a classic bull market breather or the start of something uglier. While paper hands panic, OGs remember: double-digit dips built more crypto fortunes than steady climbs ever did.

Technical Breakdown or Breakthrough?

That 18% plunge looks terrifying on the chart—until you zoom out. Healthy corrections clear out leverage and weak hands, creating rocket fuel for the next leg up. Remember last cycle's 30% flash crashes that preceded 200% rallies? Markets need to breathe, and sometimes they gasp.

The Institutional Angle

Meanwhile, traditional finance bros are probably shorting the dip while telling their golf buddies crypto is dead—classic Wall Street hypocrisy. They'll FOMO back in at the top, as usual.

Bottom Line: Panic or Patience?

Eighteen percent stings, but in crypto years, that's basically a speed bump. Either you believe in the technology's long-term trajectory or you don't. The real question isn't whether HYPE will recover—it's whether you'll still be holding when it does.

Broader market correction 

The drop aligns with a broader market correction, where risk assets are under siege. Bitcoin (BTC), the bellwether of the space, tumbled to a seven-month low of $81,386 late today. ethereum (ETH), meanwhile, has shed nearly 10% in the same period, dipping to $2,650 amid fading momentum in layer-1 narratives. 

The total crypto market capitalization has contracted by 10.88% to $2.78 trillion, erasing $2.8 billion in value. Analysts point to macroeconomic headwinds—the uncertainty around Fed’s rate cuts in December and profit-taking after a lackluster post-halving rally—as the primary culprits. 

Yet, for HYPE specifically, the timing feels acutely personal. The token has now retraced 45% from its all-time high of $59.39 set in September, entering a zone that technical traders are calling the “final accumulation phase.” 

TradingView chart reveal HYPE breaking the key support levels at $35-$36 range and the next major support currently sits in the $30-$31 range. The relative strength index (RSI) dipping to oversold levels at 24—echoing bottoms in past cycles for high-growth altcoins. 

Normal pullback or bearish reversal?

This 18% drop is usually considered a classic correction MOVE while HYPE remains up 380% from its May lows and still generates roughly $3–4 million in daily protocol revenue that flows almost entirely into buybacks and burns. Even during this sell-off, Hyperliquid’s trading volume stayed above $10 billion weekly, and open interest only contracted 8%—hardly the footprint of a dying platform. 

With Bitcoin stabilizing above $81k and the first major token unlock now most likely priced in, on-chain whales have either held or added positions below $33. As of now, this looks less like distribution and more like the final shakeout before the next leg higher. 

On the bearish perspective, the token’s market reveals something darker: a topping pattern disguised as a correction. HYPE has now erased its entire post-Robinhood listing pump, market share in perps has fallen from 72% to under 55% in six weeks, and daily active traders dropped 22% since the POPCAT bad-debt incident. 

The looming November 29 linear unlock will inject roughly $15–18 million of new sell pressure every single day for two years—more than double the current buyback firepower on most days. 

Hyperliquid’s gigantic rise 

Hyperliquid’s ascent earlier this year was nothing short of meteoric, positioning HYPE as a cornerstone of the perpetual DEX boom. Launched in late 2024 via one of crypto’s most lucrative airdrops—distributing 31% of supply to just 94,000 eligible users—the platform bootstrapped its way to dominance without venture capital fanfare. 

By mid-2025, Hyperliquid had processed over $1.14 trillion in cumulative trading volume, outpacing rivals like GMX and dYdX in market share, which peaked at over 70% of the perp DEX sector. Its own Layer-1 blockchain, HyperEVM, boasts near-instant settlements and up to 50x leverage, attracting a daily active user base exceeding 100k and total value locked (TVL) now sitting at $4.32 billion, as per DeFiLlama data. 

Traders elevates HYPE’s value proposition to its tight coupling to platform economics. An astonishing 97% of Hyperliquid’s fees—annualized at $1.2 billion—flow directly into HYPE buybacks and burns, creating a deflationary flywheel. In Q3 alone, the protocol generated $106 million in revenue, surpassing Ethereum and Solana combined in some metrics, with $25 million weekly repurchases removing tokens from circulation. 

Moreover, recent innovations around HIP-3 (permissionless perpetual markets via HYPE staking) and the launch of USDH stablecoin have deepened liquidity on the protocol, potentially routing 95–100% of yields back to HYPE holders. 

Also read: Monad Premarket Perps Drop 20% Ahead of Mainnet Launch