Hyperliquid (HYPE) has seen its value drop by 15% over the past month, underperforming Bitcoin, Ethereum, and Solana. The token was trading at $76.55 on Sunday, marking a 22% decline from its September 23 peak of $97.96. Currently, the market capitalization of the asset is approximately $17 billion.
The decline follows a scheduled payout on October 6, where the Hyperliquid team received 3.75 million HYPE tokens, valued at roughly $340 million. A co-founder stated that these tokens would be sold off-exchange to an institutional buyer. This amount is nearly five times the $71 million the platform spent on buybacks over the last 30 days.
Despite the price drop, analysts remain optimistic about the asset. According to CryptoQuant, HYPE currently holds the highest bullish sentiment ranking, scoring 2.3 standard deviations above its historical norm. While 90% of tracked analysts are bullish on HYPE, some other assets like Cardano maintain higher consensus levels.
Market participants are now monitoring two key factors: the ability of daily buybacks to offset selling pressure and the support level of $75.14. HYPE is currently trading less than $1.50 above this threshold. Analysts have set price targets for the token in the range of $100 to $120.
