Hyperliquid's native token, HYPE, extended its monthly decline as large holders continued moving tokens to centralized exchanges. Hyperliquid is a decentralized perpetuals exchange operating on its own Layer 1 blockchain, and HYPE serves as its ecosystem token. Over the past month, HYPE has fallen approximately 24% and recently traded near $54.06 on the four-hour chart. The slide followed repeated failures to maintain gains above the $60 level throughout July, while the broader cryptocurrency market also lacked a clear directional bias.

Recent on-chain data revealed that Multicoin Capital, a cryptocurrency-focused venture capital firm, transferred 137,100 HYPE, valued at roughly $7.51 million, to Coinbase Prime. Bitwise, a digital asset management firm known for its crypto index funds and ETFs, also moved 22,463 HYPE, worth nearly $1.23 million, to Coinbase. Combined, the two transfers totaled approximately $8.74 million. While exchange deposits do not necessarily confirm that sales have occurred, they can increase available supply and erode buyer confidence when demand remains limited. Similar transfers observed throughout July have placed sustained pressure on any short-term rally attempts.

HYPE Slides Below Key Moving Averages

After losing a significant support zone, HYPE remained below both its 50-day and 100-day moving averages. The token now trades closer to its 200-day moving average, which sits near $50 and represents the next major long-term support area. Although the rising average may attract buyers looking for lower entry points, sellers continue to dominate the broader trend.

The relative strength index (RSI) dropped to approximately 34, bringing HYPE to the edge of oversold territory for the first time in several weeks. This reading can facilitate a short-term rebound, though it does not confirm a market bottom. Persistent exchange inflows could constrain recovery efforts if large holders continue reducing their positions. A sustained recovery would likely require stronger trading volume.

$50 Support Becomes the Central Focus

On the four-hour chart, HYPE remained below the Ichimoku cloud, indicating that sellers maintained control of the short-term trend. Price also stayed under several notable Ichimoku levels near $54.34, $55.56, $56.78, and $57.14, each of which could function as resistance during any recovery attempt. The cloud itself remains the primary obstacle for bullish momentum.

The initial support zone lies between $53.50 and $54. A decisive break below that range could pave the way toward $52, and further selling pressure could bring the $50 region into play. If HYPE holds above current support, buyers may test $54.34 before targeting higher resistance levels. A failure to maintain $53.50, however, could accelerate the downward move.

The Stochastic RSI climbed to 82.29, with its signal line at 73.92. This increase reflected improved short-term momentum, though the indicator also entered overbought territory. HYPE could mount a brief rebound, but traders may lock in profits unless the price moves above $55.56 and sustains that level. A push above $56.78 would strengthen the short-term technical setup.

Trading volume has moderated compared to the elevated activity recorded in May and June. Declining volume during a downtrend often signals diminished buying interest. For decentralized exchange tokens like HYPE, trading volume trends can also reflect shifting activity on the underlying protocol. The $50 to $52 range has emerged as the primary area to monitor, while a move above the Ichimoku cloud near $57.14 would indicate improved buyer control.