Hyperliquid Price Forecast: HYPE pares gains as market focus shifts to tokenization assets

Source Fxstreet
  • Hyperliquid extends losses on Tuesday after a 5% decline the previous day.
  • Zero ETF inflows on Monday risk a net-negative month in September.
  • The technical outlook for HYPE indicates a mild downside risk as bullish momentum eases.

Hyperliquid (HYPE) faces intense selling pressure, declining nearly 2% on Tuesday after losing over 5% the previous day. The institutional demand for HYPE continues to fluctuate, risking a net-negative monthly flow in September. The technical outlook for HYPE warns of deeper losses as momentum starts to shift bearish. 

Institutional demand shifts from Hyperliquid

Hyperliquid-focused Exchange Traded Funds (ETFs) recorded zero net inflows on Monday, following a $9.25 million inflow last week. Despite two consecutive weekly inflows, HYPE ETFs have recorded a net monthly outflow of $1.83 million so far, down from $66.33 million in August. This indicates that the institutional demand has eased significantly and could weigh on the exchange token.

HYPE ETFs data. Source: Sosovalue

On the other hand, the Quant (QNT) and Ondo (ONDO) have rallied so far this week, driven by tokenized bank deposits and tokenized portfolio strategies. This reflects market attention and capital rotation toward tokenized assets.

Technical outlook: Hyperliquid's correction gains traction

Hyperliquid trades below $86 on Tuesday, extending its pullback from last week's high of $98.03. HYPE shows a bearish near-term bias as the pair slips below the 50- and 100-period Exponential Moving Averages (EMAs) on the four-hour chart at $90.77 and $88.81, respectively, while holding modestly above the 200-period EMA at $84.40, which acts as underlying trend support.

Momentum grows weak, with the Relative Strength Index (RSI) near the oversold band around 32 on the four-hour chart, while the Moving Average Convergence Divergence (MACD) declines into the negative territory, suggesting firm downside pressure.

The immediate support for HYPE aligns with the 200-period EMA at $84.40, reinforced by the September 4 low at $83.56. A confirmed breakout below this level could target the August 22 low at $77.02.

On the flip side, HYPE must reclaim the overhead 50- and 100-period EMAs around $90.77 and $88.81 to reinstate an uptrend, which could open the path toward the $98.03 swing high.

Chart Analysis HYPE/USD (baha Crypto)
HYPE/USD daily price chart.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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