Hyperliquid (HYPE) Price Down Amid Coinbase Perpetuals Launch, Technical Indicators, and Broader Market Weakness

Hyperliquid (HYPE) dropped 2.39% due to Coinbase Perpetuals launch, technical bearish signals, and broader market weakness. Coinbase's new US-regulated perpetual futures challenge Hyperliquid's position as the leading decentralized perpetuals platform. Technical indicators show bearish momentum, and market-wide dip: Total crypto market cap fell 1.36%. Hyperliquid faces rising CEX competition but maintains strong derivatives traction, with whale activity and airdrop speculation fueling volatility amid bullish forecasts.

Hyperliquid (HYPE) experienced a significant drop of 2.39% in its price over the past 24 hours, primarily due to the launch of Coinbase's new US-regulated perpetual futures and broader market weakness. The decline came amidst technical bearish signals and a general dip in the total crypto market cap, which fell by 1.36% [1].

Coinbase's entry into the perpetual futures market directly challenges Hyperliquid's position as the leading decentralized perpetuals platform. While Hyperliquid processed $249B in May 2025 volume, the convenience of CEX trading could potentially divert liquidity away from Hyperliquid [2]. The timing of HYPE's price dip, starting at 10:11 AM UTC+0 on July 24, coincides with the launch of Coinbase's perpetual futures, suggesting a direct correlation [1].

Technical indicators further support the bearish momentum, with the MACD (1.67) dipping below the Signal Line (2.04) and a key support breach, as the price fell below the 7-day SMA ($44.93) and EMA ($44.99). Additionally, the 24-hour volume rose by 32.78% to $472M, indicating active selling pressure [2].

The broader market dynamics also played a role in HYPE's decline. BTC dominance rose from 60.05% to 61.07%, pressuring altcoins, while the Altcoin Season Index dropped by 6.98% as risk appetite waned. The Fear & Greed Index dipped from 70 (Greed) to 67, reflecting a cautious market sentiment [2].

Despite these challenges, Hyperliquid maintains strong derivatives traction, with whale activity and airdrop speculation fueling volatility. A whale deposited $3M USDC for a 20x ETH long, amplifying liquidity inflows and protocol fee revenue. However, the token's 7-day decline (-7%) suggests profit-taking after a 123% 90-day rally [2].

The upcoming Zircuit integration and investment forecasts projecting HYPE at $72 by 2025, citing its 70% DEX perpetuals market share and $185M spot volume debut, could provide a boost to Hyperliquid's sustainability. However, the platform must differentiate its trustless model to retain market share against CEX rivals [2].

References:

[1] https://coinmarketcap.com/community/articles/688224ebee5d734e975bb641/
[2] https://coinmarketcap.com/academy/article/hype-news-why-is-hypes-price-down-today
[3] https://finance.yahoo.com/news/hype-news-why-hype-price-132719592.html