Key Moments
- Hyperliquid (HYPE) extends its pullback, falling nearly 2% on Tuesday after a drop of over 5% the previous day.
- HYPE-focused ETFs register zero net inflows on Monday, leaving September with a net outflow of $1.83 million after $66.33 million of inflows in August.
- Technical indicators show weakening bullish momentum, with HYPE trading below key EMAs and momentum gauges pointing to growing downside risk.
Institutional Appetite for HYPE Cools
Hyperliquid (HYPE) remains under selling pressure, with the token slipping nearly 2% on Tuesday after losing more than 5% the previous day. Institutional participation has become more erratic, raising the possibility that September could end with net-negative flows.
Exchange Traded Funds (ETFs) focused on Hyperliquid showed zero net inflows on Monday, following a $9.25 million inflow recorded last week. Despite two straight weeks of positive flows, HYPE ETFs have posted a net monthly outflow of $1.83 million so far in September, a sharp reversal from the $66.33 million inflow seen in August. This reversal underlines a pronounced easing in institutional interest, which may continue to pressure the exchange token.
HYPE ETFs data. Source: Sosovalue
Rotation Toward Tokenization Themes
While HYPE struggles, interest has shifted elsewhere in the digital asset space. Quant (QNT) and Ondo (ONDO) have advanced so far this week, supported by themes around tokenized bank deposits and tokenized portfolio strategies. This price action highlights a rotation of market focus and capital toward tokenization-related assets.
Technical Setup Points to Growing Downside Risk
Hyperliquid trades below $86 on Tuesday, extending a retreat from last week’s peak at $98.03. The near-term technical bias has turned bearish as HYPE trades beneath both the 50- and 100-period Exponential Moving Averages (EMAs) on the four-hour chart, located at $90.77 and $88.81, respectively. The token still holds slightly above the 200-period EMA at $84.40, which currently serves as the primary trend-support level.
| Indicator / Level | Value | Comment |
|---|---|---|
| Current price area (Tuesday) | Below $86 | Extending pullback from $98.03 high |
| 50-period EMA (4H) | $90.77 | Overhead resistance |
| 100-period EMA (4H) | $88.81 | Additional resistance zone |
| 200-period EMA (4H) | $84.40 | Key support level |
| RSI (4H) | Near 32 | Close to oversold band |
| MACD (4H) | Negative territory | Signals firm downside pressure |
| Support – September 4 low | $83.56 | Reinforces 200-period EMA area |
| Support – August 22 low | $77.02 | Potential target if support breaks |
| Resistance – recent swing high | $98.03 | Upside objective on trend resumption |
Momentum readings are deteriorating. On the four-hour chart, the Relative Strength Index (RSI) is hovering near the oversold region around 32, indicating weakening buying interest. At the same time, the Moving Average Convergence Divergence (MACD) has moved into negative territory, reflecting sustained downward pressure.
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