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Key Highlights:
- Hyperliquid’s native token $HYPE is down by 9% today, December 16, 2025.
- The main reasons for this plunge include massive leveraged liquidations, delay in rolling out of ETF product and token unlocks.
- Possibility of the token price to dip as low as $20 due to broken technical support and ongoing market weakness.
Hyperliquid’s native token $HYPE dropped more than 9% today, December 16, 2025, and is underperforming than the broader crypto market which is down by approximately 4%. The dip indicates that there is a mix of market-wide pressure, rising supply, cautious investor sentiment, and technical weakness, setting a negative tone for the token in the short term.
At press time, the price of the token stands at $26.72 with a drop of 9.09% in the last 24 hours as per CoinMarketCap.
Massive Leveraged Long Liquidations
On December 16, 2025, a lot of traders lost their money real quick as more than $584 million worth of risky trades were automatically closed in just a single day. Hyperliquid was also hit, an estimated $115 million in long positions were liquidated, as most of the traders were betting on the price to go up, however, those bets got wiped out when prices slipped during low holiday trading.
Once prices fell below the $28-30 price range, automatic sell orders kicked in, causing a chain reaction that made the drop much worse. Since Hyperliquid is dependent heavily on leveraged trading, this sudden rush to exit turned a small decline into a sharp crash.
Until trading activity and confidence return, there is a risk of more forced selling, while a pickup in interest would suggest the worst may be over.
Bitwise ETF Delays Trigger ‘Sell the News’
According to Eric Balchunas, senior ETF analyst at Bloomberg, Bitwise updated its paperwork on December 15 for Hyperliquid ETF called BHYP. It was also brought to notice that the product will offer a low fee of 0.67% and an option to earn rewards by staking HYPE, which raised hopes of a lunch by late December or early January.
Bitwise just filed amendment for its Hyperliquid ETF which added the 8a thing, the fee (67bps) and the ticker $BHYP. Usually that means launch imminent. Stay tuned. pic.twitter.com/uNXwlIrkga
— Eric Balchunas (@EricBalchunas) December 15, 2025
However, traders chose to book profits early, as they were worried about how regulators might view staking returns. As selling picked up, the price of the token dipped below a key short-term average near $28.66, triggering a classic “sell the news” reaction.
Even though the ETF approval can bring in a huge amount of institutional money to Hyperliquid, the near-term uncertainty dampened the mood, keeping buyers on the sidelines. A favorable signal from regulators could quickly lift confidence and turn sentiment positive again.
Token Unlock Fuels Short-Term Sell-Off
In other news, about 1.75 million new HYPE tokens were released on November 29 and this move has increased the number of tokens that are available in circulation. This happened when the tokens were in the $26.4-$29.5 price range. Even though most HYPE tokens are still locked or they are staked, it limits long-term impact, the timing somehow pushed some early holders to sell and take profits.
This extra supply fed into the ongoing sell-off caused by liquidations, made the fall even more sharper. While the release schedule is designed in such a way that it prolongs selling pressure, traders are now watching closely to see if long-term holders absorb these tokens, which could help slow or stop further declines.
Technical Breakdown Signals Deeper Correction Ahead
The price charts clearly show that the $HYPE token is under pressure. The token fell below an important level near $28.1 and also slipped past a key support around $30, which traders were keeping an eye on. Momentum indicators now show the price is weak, with selling pressure still dominant and the market close to being oversold.
According to various analysts the next support level is around $27 but since the token has already dropped below this support, there are chances that the price may slide to $25 or lower levels, where buyers may step in.
$HYPE Ultimately I think you see low $20s for this one. It’s still the best project in crypto and imo it’s superior to Lighter (I trade on both). But unlocks are unlocks + market environment has been quite bad for altcoins, even those as strong as HyperLiquid pic.twitter.com/lC4v6Jd6M4
— Altcoin Sherpa (@AltcoinSherpa) December 15, 2025
Market analysts (AltcoinSherpa) on X also highlighted the same thought and stated that even though Hyperliquid is a top tier project, there could still be short-term downside because of token unlocks and a weak altcoin market.
Also Read: HYPE Falls 5% Amid Token Transfers; Heavy Competition from Light & Aster