Hyperliquid (HYPE) extended its losses to 22% from its July high of $73, effectively breaking a key trend line as analysts became defensive. According to famous crypto analyst Michael Van de Poppe, it was time to be “passive” on altcoins.
$HYPE has unfortunately lost its uptrend, which means I will be more passive in a potential trade. The last time this happened the price dropped from €50 to €15.
In other words, Poppe preferred If the pullback is prolonged, there will be a slower scaling. Think of this as a daily cost-averaging (DCA-ing) strategy where small amounts are periodically allocated to the altcoin.
Another analyst and trader Dylan Loomer, popularly known as Trader Mayne at X, echoed a similar stance and predicted a potential 38% pullback to the monthly demand zone near $35.
I have no idea if we’ll land in monthly demand territory, but if we do, I think it’s a good idea to buy HYPE at as low a price as possible. $35 would be a giveaway but I’ll start scaling before that.
In the first half of 2026, HYPE outperformed the market and became a favorite among traders, partly due to the impact of the early West Asian crisis. So what happened to the bullish catalysts in the second half of 2026?
3 factors that increase HYPE sales pressure
First, institutional demand from US Spot HYPE, which fueled June’s explosive rally to an all-time high, faded in July.
Since mid-July, the products have remained negative for the longest time since their debut. They have been losing an average of $1 million (~20 thousand HYPE) a day since July 10th.
Venture firms such as a16z and Multicoin Capital no bet a $120 million HYPE this week) further intensified enterprise sales.
Are weak buybacks hurting HYPE?
Additionally, trading activity has slowed since June and revenue has decreased 3x from an average of $21 million to $7 million per week. This then affected the pace of HYPE buybacks by 3x, from 318k HYPE at the beginning of June to 108k tokens at the end of July.
This averaged around 20,000 HYPE per day, meaning the buyback program should be sufficient to offset ETF selling pressure.
HYPE is now likely to be reacting to the Multicoin Capital sell headline story and broader market sentiment.
In fact, the smart money’s net position was negative, with over $150 million betting against its recovery.
In general, traders actively open short positions Hyperfluid (HYPE) amid a decline in buybacks and selling by ETF and VC firms. However, some analysts believe deeper corrections could present new discounted buying opportunities.
Final Summary
- HYPE fell 22% from $73 to $57 as analysts warned the pullback could deepen
- While US spot HYPE ETF sales reached a weekly average of $1 million, buybacks decreased by 3x, further suppressing the altcoin’s value.
