Hyperliquid Price Prediction: HYPE Slips 1% As Fund Manager Proposes Slashing HYPE Supply By 45%

The Hyperliquid price slid by more than 1% in the last 24 hours to trade at $48.62 as of 4:46 a.m. EST on trading volume that plunged 16% to $745 million.

This comes as DBA Asset Management investment manager Jon Charbonneau proposes cutting the total supply of HYPE by 45% to make its tokenomics more attractive to investors.

The move would remove HYPE’s 1 billion hard cap, which could allow future issuance only through governance-approved channels such as staking emissions or community rewards. 

Charbonneau also proposed revoking authorization for all unminted HYPE tokens for future emissions and community rewards (FECR), and burning all HYPE in Hyperliquid’s Assistance Fund (AF).

While the plan needs to be voted on and passed through Hyperliquid’s governance structure, DBA would be a major participant, given that it actively stakes HYPE and holds a material position in the token.

Since HYPE rallied to a new all-time high of $59.30, it has plunged over 17% to the current price. Can it recover?

Hyperliquid Price On A Sustained Bullish Trend

The HYPE price shows a well-defined upward trend, trading within a rising parallel channel since May.

This channel has provided both support and resistance levels, guiding the overall bullish trajectory. 

Recently, the Hyperliquid price tested the upper boundary near $59 before pulling back sharply, finding support around the 50-day simple moving average (SMA) at $47.43. 

The 200-day SMA, currently at $33.28, continues to slope upward and remains far below the current price, confirming the broader bullish market structure.

The Fibonacci retracement levels highlight key zones where the price of HYPE has interacted. After touching the 0.236 retracement level near $51, the rejection led to a pullback that is now consolidating just above the 0.382 level around $45.87.

HYPE/USD Chart Analysis: TradingView

HYPE Indicators Suggest Cooling Momentum Before Next Move

The Relative Strength Index (RSI), at 45.47, has dipped close to neutral territory after previously signaling overbought conditions near 70. This cooling suggests that while buyers still control the broader trend, momentum has slowed, and consolidation may follow.

If the price regains bullish momentum and clears the $51 resistance, the next major level to watch would be the 0.618 extension around $59.65. A decisive break above this could open the path toward the $69.46 target.

Conversely, failure to hold above $45.87 could invite a retest of the 0.618 retracement level at $37, where stronger support converges with the lower channel boundary.

HYPE has continuously taken a plunge from its ATH, which has driven some analysts to believe that the asset could drop even further. One such analyst, Degen Ape Trader, suggests that the Hyperliquid token may find sufficient support around the $40 level, which could be attributed to sustained selling pressure in the market.