Analyst Who Called the Hyperliquid (HYPE) Crash Now Says More Downside Could Be Ahead

Key highlights:

  • The HYPE price is down about 31% from $77 to near $54 and roughly 70% from the 2025 peak
  • Analysts still expect a move toward the $40-$34 support zone before considering accumulation
  • Hyperliquid’s RWA volume reached about $25.1 billion in one week, roughly 52% of total platform activity

Hyperliquid is back on traders’ watchlists, but not for the reason many holders were hoping for. The HYPE price has dropped from around $77 to roughly $54, a decline of about 31%, and that has reopened the debate about whether this is a healthy correction or the start of another leg lower.

 

Crypto Patel had already flagged the $70+ area as a high-risk zone before the sell-off began. His view still points to a deeper pullback, with the $40-$34 region remaining the area he is watching for potential long-term accumulation.

The HYPE price has lost roughly 70% from its peak

We took a look at the chart Patel shared, and the bigger picture is still heavy. Hyperliquid traded near $180 during the 2025 peak and is now around $53.96. That is roughly a 70% decline from the high.

The 3-day chart continues to show lower highs and lower lows, which is the classic definition of a bearish trend. The first major resistance is around $59.81, and another important level sits near $77.15. Until buyers can reclaim those areas, the market has not yet proven that the larger downtrend is over.

Support is easier to identify. The current zone near $54 is the first level bulls are trying to defend. If that breaks, traders will likely start watching $50, then $40, and eventually the $34 area highlighted by Patel.

Patel’s main argument is simple: strong assets often offer the best opportunities after deep corrections, not during euphoric rallies. His chart points to the 0.5-0.618 Fibonacci retracement zone between $40 and $34 as the area where he would begin looking for accumulation.

The bigger story is happening on the Hyperliquid platform

What makes this correction more interesting is that the exchange behind the token is showing growth in a completely different area. During the week of July 13-19, tokenized real-world assets generated about $25.1 billion of Hyperliquid’s $48.2 billion total DEX volume. In other words, RWAs accounted for roughly 52% of platform activity during that period.

Tokenized stocks were the main driver, contributing about 61% of RWA flow. That matters because Hyperliquid routes protocol fees into HYPE through burns and revenue-linked token mechanics, so higher trading volume can feed directly into token economics.

For context, traditional finance activity on crypto venues is still dominated by perpetual futures. CoinGecko data shows TradFi perpetual volume remains several times larger than spot RWA volume across major exchanges, so Hyperliquid’s RWA milestone is notable but still early in the adoption cycle.

What’s next for HYPE?

The HYPE price is now caught between two competing forces. The chart still points lower, with the next major support zone sitting between $40 and $34. At the same time, Hyperliquid is becoming one of the more active venues for tokenized stocks and other real-world assets, which supports the longer-term business case for the token.

In the short term, traders are watching whether HYPE can reclaim $59.81 and then challenge the $70-$77 region again. Failure to do that keeps the correction thesis alive. According to CoinCodex’s 1-month HYPE price prediction, the price is projected to reach $42.39, indicating downside risk from the current level.

 

Source:: Analyst Who Called the Hyperliquid (HYPE) Crash Now Says More Downside Could Be Ahead

Updated: July 30, 2026 at 11:01 am
Tags: , ,