Hyperliquid USD Drops 0.8% to $77.84 Amid Leverage Unwind

Hyperliquid USD fell 0.8% to $77.84 in 24 hours as a $150 million crypto leverage unwind forced selling across the market. HYPE’s higher beta amplified the decline, though institutional endorsement and a $2.65 million token burn on September 12 provided support. The coin now tests its critical $78 support level, with technical data showing mixed signals between momentum and trend strength.

Why the leverage flush hit HYPEUSD harder

A sharp deleveraging event liquidated $150 million in crypto long positions in 24 hours, creating forced selling pressure. HYPEUSD, with a beta higher than Bitcoin’s, experienced amplified selling as traders reduced risk. Galaxy Digital transferred 95,270 HYPE worth $8.11M to exchanges, signaling profit-taking after the recent rally near $88.

Technical picture shows consolidation, not capitulation

The RSI sits at 58.21, well below overbought territory, while the ADX reads 44.62, confirming a strong underlying trend despite the pullback. Price is defending the $78 support level, which has held twice and formed a potential double-bottom pattern. The Bollinger Bands upper level at $94.54 remains 21% above the current price, leaving room for recovery if selling pressure eases.

Institutional backing and token burns support the floor

Multicoin Capital reassessed HYPE as one of its largest holdings on September 12, citing strong liquidity and developer activity. Hyperliquid’s Assistance Fund burned 32,770 HYPE tokens worth $2.65 million in the 24 hours before the price drop, bringing lifetime burns to 48.57 million HYPE, or 4.86% of maximum supply. This deflationary mechanism creates consistent buy-side pressure.

What forecasts suggest for the next 12 months

Meyka’s one-month forecast stands at $75.85, down 2.6% from the current price, while the 12-month forecast is $63.10, implying 18.9% downside. The quarterly target of $61.11 suggests near-term consolidation before potential recovery. Forecasts may change due to market conditions, regulations, or unexpected events.

Final Thoughts

HYPEUSD’s 0.8% drop reflects market-wide deleveraging rather than protocol weakness. With the RSI neutral, the ADX strong, and institutional buyers backing the project, the $78 support level remains the key battleground for the next directional move.

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Disclaimer:

Cryptocurrency markets are highly volatile. This content is for informational purposes only. The Forecast Prediction Model is provided for informational purposes only and should not be considered financial advice. Meyka AI PTY LTD provides market data and sentiment analysis, not financial advice. Always do your own research and consider consulting a licensed financial advisor before making investment decisions.