HYPE Token Drops 20% After Eyenovia and Lion Group Announcements

HYPE, the token associated with Hyperliquid, experienced a significant drop of nearly 20% after reaching a high of $45. The price decline was attributed to strong selling pressure and the market's lackluster response to recent treasury announcements from Eyenovia and Lion Group. Despite the bullish headlines, the market chose to cash out, leading to a shift in momentum.

The price of HYPE had previously surged from $17 to $45, gaining over 170% in a short period. However, after hitting $45, the token faced a wall of sell orders, resulting in a 7% drop in just 24 hours. Traders are currently booking gains rather than placing new bets, indicating a cautious approach. The next line of defense for HYPE is at $38.13, according to Fibonacci levels. A close below this level could trigger a further decline to $27–$31. Buyers are hesitant, and selling pressure is building, suggesting a potential slowdown in the market's enthusiasm for HYPE.

Eyenovia, a biotech firm, announced a $50 million HYPE reserve, marking the first time a US public company added HYPE to its treasury. This announcement was expected to boost market sentiment, but the response was underwhelming. Traders seemed to expect more concrete adoption details or better timing. Additionally, Lion Group secured a $600 million credit facility to launch its HYPE treasury, with BitGo managing the digital asset infrastructure. These developments, while significant, did not lift the price of HYPE as anticipated.

Despite rising institutional interest, sentiment remained flat. Buyers are looking for more than just announcements; they want to see action. HYPE needed a spark to reignite market excitement, but the recent treasury news failed to provide it. Hyperliquid, the platform associated with HYPE, continues to lead among decentralized exchanges in gas revenue and has even topped Ethereum and Solana briefly. However, the demand for HYPE has cooled, and traders are now waiting for stronger momentum.

Support near $38 is crucial for HYPE's next move. If this level holds, bulls may regain control and initiate a rebound. However, if sellers continue to press, the next support level lies around $30. Traders are now closely monitoring the market for clarity on whether news will finally match expectations or if HYPE needs to cool off before the next surge. The recent price action suggests a cautious approach, with traders booking gains and waiting for stronger momentum before making new bets.