- HYPE price correction to 50% Fibonacci retracement level indicates a healthy pullback for a 2x leveraged ETF tracking Hyperliquid’s HYPE.
- 21Shares filed for a 2x leveraged ETF tracking Hyperliquid’s HYPE token.
- At Token2049 Singapore, Arthur Hayes revisited his earlier call that HYPE could surge 126x, revealing he exited his position six weeks later.
HYPE, the native token of decentralized perpetuals exchange Hyperliquid, plunges to $33.2 low with an intraday loss of 11.3% on Friday before a short rebound to $35.67. This drop occurred amid mounting selling pressure in the broader market as U.S.-China trade tension continues to drive investor uncertainty. The falling HYPE price gains traction as Arthur Hayes highlights the cautionary approach to Hyperliquid. However, the speculative force could counter the bearish momentum as development on HYPE-based exchange-traded funds (ETFs) raises market anticipation for a rebound.
21 Shares Files Hyperliquid ETF Prospectus
Hyperliquid has submitted a leveraged ETF prospectus on 21Shares to provide 2x exposure to its HYPE token. Bloomberg ETF analyst Eric Balchunas said the filing is one of those “SO niche” products that may seem obscure at launch but end up attracting billions in a few years’ time. The new concept is the latest in a flood of niche ETF ideas that hark back to the old days of theme, currency hedging, and smart beta crazes that once marked the industry’s experimental fringe.
The move comes as Hyperliquid comes under increased scrutiny after recent comments by BitMEX co-founder Arthur Hayes in the Token2049 conference in Singapore. Hayes, who had earlier forecast Hype would climb “126x,” revealed that he exited his position approximately six weeks after making that forecast.
Hayes argued that structural risks in the project were the reason for the change in stance. He noted that the Sword of Damocles hanging over Hyperliquid is due to the impending token unlock schedule and the intensifying competition in perpetual DEX markets. Starting in November of this year, approximately $500 million worth of team tokens will enter circulation annually—an overall increase in the supply that may have an impact on the token’s performance.
He also mentioned that Hyperliquid’s once dominant 60-70% market share has been eroded by emerging competitors such as Lighter and Aster. While still acknowledging Hyperliquid “has a technological advantage” and can still reach that ultimate 126x target by 2028, Hayes said he’s taking a step back for now, adding, “I’ll make a judgment call only after Hyperliquid demonstrates it has a competitive moat and real fee-earning capability.”
The twin developments—21Shares’ niche ETF filing and Hayes’ tempered view—reflect the uneasy balance in crypto markets between speculative innovation and structural risk, where ambitious products and ambitious forecasts often clash long before fundamentals validate them.
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Hype Price Gives Major Breakdown Channel Pattern
In a four-day downfall, the Hype price plunged from the $43.61 level to the current trading price of $36.28, accounting for a 16.82% loss. In the daily chart, this reversal marks the latest lower-high formation in price, indicating an intact sell-above sentiment in tax market traders.
Upon further analysis, the recent price correction also breaks below the support trendline of a long-coming channel pattern and is currently testing the 50% Fibonacci retracement.
With sustained selling pressure, the coin could breach the $35.5 support, accelerating the HYPE price for further correction.
The post-breakdown fall could plunge the price another 11.64% before testing the psychological level of $30.
On the contrary, if buyers defend $34.5 support, the HYPE price could renew its bullish momentum for the next leap.
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