HYPE Faces Sell-Off After Rejection, Will This Crucial Support Hold?

TL;DR

• HYPE’s price rejected near $50, with analysts now eyeing a potential retrace toward $39.
• Hyperliquid’s Assistance Fund has repurchased $29 million in HYPE, pushing buybacks above $540 million.
• TVL rebounds to $635 million, holders’ revenue stays strong above $2 million daily since June.

Price Reversal After Resistance Test

Hyperliquid (HYPE) slipped after failing to hold above $48–$50. The token turned lower, repeating a rejection seen earlier at the same level. Analyst Ali Martinez said the next area to watch is $39.

HYPE was trading near $42 at press time. It is down 4% in 24 hours and 3% over the week. The asset has fallen through support around $44–$45. 

Charts show $39 as the next clear line, with heavier support at $36–$37. A move back above $46 would help the bulls, while a break over $50 would reset the trend.

After a rejection at the top of the channel, Hyperliquid $HYPE targets $39! https://t.co/gen0qbWYYT pic.twitter.com/pYmqHFLtZp

— Ali (@ali_charts) August 18, 2025

Different Views in Market

Other voices remain more optimistic. Hydraze called HYPE “the most comfy ALT hold in crypto this year,” saying long-term holders should sit tight.

At the same time, Hyperliquid News reported that the project’s Assistance Fund has repurchased more than $29 million in HYPE, taking total buybacks above $540 million. Last week, CryptoPotato reported the latest move higher was “led by spot buying,” with the fund absorbing supply. Buybacks of more than $5 million a day are expected to continue.

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On-Chain Activity Holds Firm

Apart from the price, network data indicate rising usage. Hyperliquid recorded $635.94 million in total value locked on August 19, alongside $3.54 million in holders’ revenue. TVL has more than doubled since April, when it dropped under $300 million.

Holders’ revenue has also stayed firm. Since June, daily numbers often topped $2 million, with peaks near $7 million. That growth shows steady demand for the platform’s services despite token volatility.

Charts now point lower, with $39 the level in focus. But continued buybacks and strong revenue may limit downside pressure. Traders are watching to see if HYPE stabilizes or extends its decline.