HYPE Drops 22% from All-Time High... Will Physical Demand Revive the Uptrend?

HYPE's token fell 22% from its all-time high, testing the 50-54 dollar support range. While spot selling pressure eased slightly, derivative market participation declined, leaving the uptrend's sustainability uncertain. HYPE retreated below $60 after failing to reclaim the $76 high, nearing its 50-day moving average. The 50-54 dollar range is seen as the most critical support due to its overlap with the rising moving average and an unfilled bullish gap. Holding this level would preserve the bullish trend structure since January. Recent corrections mirror the May 2025 pattern, where HYPE briefly made a new high near $40 before stabilizing, though no clear downtrend emerged. The RSI dipped from overbought levels but remained above typical reversal thresholds. However, physical market recovery remains limited, with cumulative volume delta showing partial recovery but still ~$950 million in net selling since the June lows, weaker than the $1.1 billion sell-off at $76.