HYPE Sheds 22% as ETF Bleeds $1M Daily, Buyback Pace Falls 3x to 108K Tokens
HYPE breaks its uptrend at $57 as spot ETF outflows, a16z and Multicoin selling, and shrinking buybacks stack up against the token.
Hyperliquid’s HYPE has broken a key uptrend line, sliding 22% from its July high of $73 to $57, as on-chain and flow data point to a convergence of institutional selling, thinning liquidity and a sharply slower buyback engine.
The token had been one of 2026’s standout performers through the first half of the year, a run partly attributed to demand generated during the early West Asia crisis. That momentum has now reversed, with the July breakdown wiping out the trendline structure that had defined HYPE’s uptrend since Q1.
ETF flows turn negative for the longest stretch since launch
U.S. spot HYPE products, which drove the token to a new all-time high in June, have posted their longest run of net outflows since debut. Glassnode data cited in the report shows the funds bleeding roughly $1 million a day — around 20,000 HYPE — every day since July 10.
Adding to the pressure, venture backers have started rotating out. Multicoin Capital unstaked $120 million worth of HYPE this week, while a16z has also been flagged among institutional sellers contributing to the drawdown.
Revenue down 3x, buybacks cut to 108,000 HYPE
Trading activity on Hyperliquid has cooled since June, and protocol revenue has followed: weekly revenue has fallen roughly 3x, from an average of $21 million to $7 million. That drop has fed directly into the buyback program, which purchases HYPE using protocol revenue.
Hyperscreener data shows buybacks falling from 318,000 HYPE in early June to 108,000 HYPE in late July — roughly a 3x reduction, averaging near 20,000 HYPE a day. That figure roughly matches the daily ETF outflow, suggesting the buyback is currently just enough to absorb — but not offset — the ETF sell pressure, with little cushion left if outflows accelerate.
Positioning data adds to the bearish tilt: Hyperindex shows smart money net short by more than $150 million, betting against a near-term recovery.
Analysts split on how deep the pullback goes
Crypto analyst Michael Van de Poppe flagged the trendline break directly, writing: “$HYPE has lost the uptrend unfortunately, which means that I’m going to be more passive on a potential trade. Last time this occurred, price fell from €50 to €15.” His stance implies scaling into weakness gradually rather than taking a full position at current levels.
Trader Dylan Loomer, known on X as Trader Mayne, sees room for a deeper move toward the monthly demand zone near $35 — a roughly 38% decline from current levels. “No idea if we get down to the monthly demand zone, but if we do, I think buying HYPE as low as you possibly can is a good idea. $35 would be a gift, but I’ll start scaling in earlier than that,” he said.
For traders watching the setup, the key variable is whether ETF outflows stabilize before buyback capacity is further squeezed. With revenue down 3x and net short positioning building, the current $57 level looks more like a battleground than a floor.
Read more: Hyperliquid RWA Flow Hits $25.1B, Flips DEX Volume Mix as HYPE Holds $58