HYPE Slides 8% as Price Tests Key Support

• HYPE price drops 8% as global risk-off pressure spreads across major crypto markets.
• HYPE returns to its long-held $21–$18 support zone as heavy market stress persists.
• Rising futures activity and oversold signals point to cooling sell pressure in the market.

HYPE price slipped another 8% in the past day, dragged lower by a broader pullback that rattled markets across the board. The drop unfolded as global risk appetite thinned out quickly, leaving digital assets exposed to a tide of liquidations and defensive repositioning.

Much of the pressure stemmed from renewed trade concerns. Former U.S. President Donald Trump’s call for tariffs ranging from 10% to 25% on European imports rekindled worries that had been simmering beneath the surface.

At nearly the same moment, Japanese government bond yields surged to levels not seen in years, adding fuel to a shift toward safer assets. Gold caught a bid, while Bitcoin slipped roughly 3.8% to $89K, and the HYPE price followed suit, reinforcing its close correlation to broader crypto stress.

Macro Shock Drives Volume Surge and Steep Losses

Following Trump’s tariff call, market depth thinned fast. According to reports, more than $200 billion evaporated from the crypto market within 72 hours, and HYPE price was among the hardest-hit names.

Its weekly decline deepened to 19%, and trading volume spiked 83% to about $325 million. That jump in turnover reflected urgency rather than enthusiasm, panic selling, forced exits, and traders stepping aside rather than leaning into risk.

The move sits on top of a longer fade that began back in late October, when sentiment first cracked. Momentum weakened steadily, and the trend grew more defined after a death cross appeared on November 21. That signal, often interpreted as a confirmation of bearish control, coincided with a sharper slide that has now pushed the token back to levels not revisited in months.

Key Support Zone Comes Into Focus

Despite the turbulence, the market’s focus has shifted to a familiar area. HYPE’s price is hovering between $21 and $18, a range that has acted as a sturdy floor since last May. The zone also aligns with the 23.6% Fibonacci level, lending another layer of significance to the current test.

Source: TradingView

Traders tracking long-term structure note that this band has absorbed repeated sell-offs throughout 2024 and into early 2025. Holding above it would not reverse the broader trend, but it would interrupt the latest wave of selling and slow the pace of decline. A failure here, however, would reopen territory last traded near $9, a level that hasn’t been seen since April 2025.

Short-Term Charts Show Compression

Zooming in, the 24-hour chart paints a different picture. Price action has been sliding along a falling wedge, a pattern known more for compression than continuation. At press time, the HYPE price is edging toward the lower boundary of that structure, where reactions have appeared before.

Source: TradingView

There’s no guarantee of a rebound, but the pattern does show sellers beginning to lose some traction. This tightening is happening against a backdrop of heavy volatility. As the wedge narrows, traders have become more cautious, waiting for confirmation rather than taking early swings at a reversal.

Related: BTC Hashrate Slides 15% as Ongoing Miner Capitulation Pulls Price to $89K

Momentum and Derivatives Data Signal Exhaustion

Momentum indicators, though not decisive, hint at fatigue. The RSI on multiple timeframes sits close to oversold territory, suggesting the pace of decline has outstripped underlying pressure. It’s less a bullish cue and more an indication that sellers may be running low on energy after weeks of dominance.

Source: CoinGlass

Derivatives data tells a similar story with a different texture. OI-weighted funding rates remain slightly positive near 0.0036%, meaning longs still hold enough conviction to pay to keep their positions open. Futures volume also surged to roughly $1.47 billion on January 18, up nearly 80% in a day.

Source: CoinGlass

That uptick reflects sustained engagement; traders are still circling the HYPE price, adjusting positions rather than retreating from the market altogether. For now, the token sits at a crossroads: heavy selling behind it, a key support zone beneath it, and a tense market waiting to see which pressure wins first.