HYPE has dropped 22% from its record high and is now testing a critical support level where sellers are losing steam. The move reflects a broader pullback in leverage trading, with futures volume contracting as traders reduce bets on further upside.
The altcoin's slide mirrors a shift in market structure. When leverage dries up, so does the mechanical buying that often props up assets during rallies. Spot demand—orders from actual buyers rather than margin traders—becomes the test of whether the asset can hold ground or crack lower.
HYPE needs to find fresh buyers at or near its support zone to avoid a deeper decline. Without renewed spot accumulation, the setup favors further weakness. The $60 level marks a psychological and technical threshold; a break below that would open room toward lower supports.
Futures traders have already pulled back significantly. This is neither bullish nor bearish in isolation, but it removes a floor that was previously there. Retail and institutional spot buyers would now have to carry the load alone, a heavier lift after a 22% drop from all-time highs.
The critical question is whether the pullback attracts genuine demand or signals a loss of momentum. Past patterns suggest that when futures leverage empties out, conviction becomes visible—real buyers step in or they don't. HYPE's next move will hinge on which scenario plays out over the next session or two.