HYPE Slides 7.5 Percent as Supertrend Flips Bearish, but Hyperliquid Keeps Burning Tokens
Hyperliquid’s HYPE token has retreated roughly 7.5 percent over the past week, sliding from an opening price near 83.55 USD on September 10 to around 78.70 USD on September 16, as legal headlines and fading technical momentum chipped away at one of the market’s strongest recent rallies.
The pullback follows HYPE’s charge to a record high near 89 USD in early September. Daily candles show buyers repeatedly failing to hold the 88 USD area before sellers finally wrested control and pushed the token decisively below 82 USD. On September 16, HYPE briefly dipped toward 76 USD before rebounding to trade near 78.70 USD, a recovery that confirmed buyers remain active at the lower end of the weekly range, even as the token has yet to reclaim the technical levels that would signal a durable reversal.
Legal overhang meets technical breakdown
The correction coincided with federal charges against two former Robinhood engineers accused of trading perpetual futures on Hyperliquid using confidential listing information. Complaints allege that Huaisong “Jerry” Xiang and Hefu Chai each earned more than 50,000 USD trading ahead of Robinhood’s public token announcements. The allegations concern the individuals’ conduct and do not accuse Hyperliquid or its developers of any involvement, but the headlines landed squarely on the protocol most closely associated with the trades.
On the charts, the 4-hour structure has turned bearish. HYPE now trades below the Supertrend indicator, which has flipped to resistance at 82.30 USD and will continue favoring sellers unless the token closes above it and holds the level as support. The 4-hour Relative Strength Index reads 47.77 against an RSI-based average of 45.16, placing momentum in neutral territory after recovering from a recent brush with oversold conditions.
Price action has carved a sequence of lower highs since the September 7 peak. A rebound attempt toward 80 USD stalled before even reaching the Supertrend line, a sign that sellers are still defending rallies. The 80 USD psychological level is the first barrier for buyers; a sustained break above it would open the door to the 82.18 to 82.30 USD zone, where the daily Bollinger Band midpoint and the 4-hour Supertrend resistance converge. A close above that confluence would weaken the bearish short-term setup and expose 84.30 USD, followed by the upper Bollinger Band near 88.53 USD. The record region between 89 and 90 USD only becomes relevant if those intermediate levels fall first.
Daily chart tells a calmer story
The daily timeframe paints a less threatening picture. HYPE remains above the lower Bollinger Band at 75.83 USD despite trading under the middle band at 82.18 USD. Daily RSI sits at 50.65, down from the overbought readings logged during the early-September rally, while the indicator’s average remains higher at 57.48, showing momentum has cooled faster than its recent trend.
A daily close below 75.83 USD would mark a more serious breakdown. The next visible support sits around 72 USD, where HYPE consolidated before its late-August advance, with the 68 to 70 USD region coming back into focus on a deeper flush. The wider structure still shows a sequence of higher lows rising from the August bottom near 51 USD, so the larger recovery pattern is not threatened until the mid-70s support area gives way. Holding 75.83 USD while reclaiming 82.30 USD would instead support a consolidation scenario between the lower and middle Bollinger Bands.
Liquidation heatmap points to 80 USD
CoinGlass’ 24-hour liquidation heatmap shows a dense cluster of liquidity between roughly 78.40 and 78.90 USD, almost exactly where HYPE trades now, with a second concentration between 79.70 and 80.50 USD. These bands tend to attract price because leveraged positions pile up around crowded levels, and the heatmap flags where forced closures could multiply if price reaches them, not where liquidations have already occurred.
Above the market, the strongest nearby liquidity sits around 80.30 USD. A push through that level could accelerate toward 81 and 82 USD as short positions come under pressure. Below price, liquidity is visible around 75 to 76 USD, aligning with the daily lower Bollinger Band, meaning a break under 77 USD could trigger a sweep of leveraged longs before buyers attempt another recovery.
Token burns continue through the dip
While traders focus on the charts, the Hyperliquid protocol has kept buying and burning its own token. Onchain Lens reported that Hyperliquid purchased and burned 36,720 HYPE worth about 2.84 million USD within a 24-hour window, at a volume-weighted average price of 77.31 USD. Lifetime burns now stand at 48.67 million HYPE, valued near 3.78 billion USD and equal to roughly 4.87 percent of maximum supply.
The buy-and-burn mechanism, funded by protocol revenue, functions as a persistent demand sink that accelerates when trading volumes rise. For long-term holders, the current dip comes with the consolation that every week of heavy platform usage removes more tokens from circulation permanently.
The setup now hinges on a straightforward question: can buyers convert the 75.83 USD Bollinger support into a base and force a close back above 82.30 USD? Until then, the short-term bias stays with the bears, while the higher-low structure from August keeps the bigger uptrend technically intact.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
supertrend flips bearish and people panic, meanwhile hyperliquid burned 2.84M USD of HYPE. tokens getting torched while price drops is a weird kind of equilibrium
the Robinhood insider trading case is the real overhang here. two ex engineers fronting listings on perps kinda undermines the fair market pitch
@wenchi_88 each made 50k+ off confidential listing info allegedly. small money for the reputational damage it did to the platform
allegedly 50k each is a rounding error next to the 2.84M weekly burn. the reputational damage to the fair market pitch is the expensive part
50k each next to a 2.84M weekly burn, the insider cases are where the real damage sits. one more of these and the fair market pitch is unsellable
2.84M weekly burn is marketing spend at this point. two engineers with 50k each did more damage in one filing than the burn offsets all quarter
@Mikkel O. exactly, 2.84M burned weekly and one DOJ filing about two guys doing 50k each still moved the chart more. narrative beats buybacks
the burn only impresses while price holds tho. 2.84M a week means nothing if 82 keeps rejecting, buybacks into a falling knife are just donating to sellers
donating to sellers is exactly it. burns during a downtrend just concentrate supply into weaker hands at lower prices
one filing moving the chart more than a quarters worth of burns is the cleanest bear thesis on record for this token
76 held and bounced back to 78.70 within hours. strong bids sitting at the lower range, supertrend or not
76 bounced twice this week so the bids at the low end look real. reclaim 82 and the supertrend flips right back, that indicator chases price
Record near 89 on September 4, now 78.70. Buyers tried 88 four times and failed every single one. That wall was the exit signal.
two ex-robinhood engineers trading perps on confidential listing info and the token drops 7.5 percent. the supertrend flip is noise next to that legal overhang
^ exactly. the chart stopped mattering the second that filing dropped. one more insider headline and 76 support becomes folklore
xiang and chai allegedly clearing 50k each on insider perps and hyperliquid still burned 2.84M of hype this week. the commitment is real at least
supertrend flips bearish and the same article notes buyers stepped in at 76 within hours. indicators describe, they dont decide
fair, but the supertrend crowd called the 82 breakdown before the filing even dropped. both things can be true, chart and courtroom
bought the dip near 76 and im already sweating. need to reclaim 82 or this bleeds into the low 70s, simple as
bought 76 into a breakdown and sweating, classic. if 82 doesnt get reclaimed this week the low 70s are next stop
76 double bounce buys you time but every day spent under 82 the low 70s thesis gains followers. simple as is right
88 rejected four times before the breakdown, that wall was loud. 82 is the line, agreed
you bought 76 into a supertrend flip, thats conviction not analysis lol. 82 is the line but maybe run a stop this time
your stop should have been at 74 the moment the supertrend flipped. sweating is the fee for skipping that step
78.70 close with 2.84M torched weekly. burns dont make demand, they just shrink the float while the filing does the price action