- $HYPE stabilizes near $25.54, showing sideways accumulation after steep December losses.
- LIT token pre-market trading on Hyperliquid sparks ecosystem activity and whale interest.
- Upcoming team token distribution and daily buybacks could influence short-term price direction.
The volatile world of cryptocurrency trading, Hyperliquid’s native token, $HYPE, has caught the attention of seasoned traders. Popular crypto analyst Altcoin Sherpa recently shared insights on X, noting the token’s impressive strength and relative stability over the past few weeks. Despite a significant price drop earlier in December, $HYPE appears to be holding its ground, prompting speculation about whether it has reached a local bottom.
Altcoin Sherpa Highlights Accumulation Phase
The chart shared by Sherpa, a 4-hour candlestick view from TradingView, illustrates this narrative clearly. Starting from highs around $27.50 USD, the token experienced a sharp decline on December 19, plummeting to lows near $22.00 USD amid high trading volume. This drop coincided with broader market pressures, but since then, $HYPE has traded in a narrower range between $24.00 and $26.00 USD, showing reduced volatility. The volume bars at the bottom, peaking during the sell-off and tapering off, suggest diminishing selling pressure and potential accumulation by buyers.
Sherpa attributes part of this resilience to the upcoming launch of LIT, the native token of rival perpetuals exchange Lighter. Hyperliquid recently listed LIT-USDC perpetual contracts for pre-market trading, allowing users to speculate on LIT ahead of its token generation event (TGE). This move has generated buzz, with whales opening significant positions—such as a 3x leveraged long on LIT worth $1.8 million USDC—indicating growing interest in the ecosystem. As of December 30, 2025, $HYPE is trading at approximately $25.54 USD, down slightly in the last 24 hours but with a robust trading volume of over $185 million.
Tokenomics: Burns, Distributions, and Price Pressure
Looking ahead, Hyperliquid faces key events that could influence $HYPE’s trajectory. The platform is set to distribute about 1.2 million unstaked HYPE tokens to its labs team on January 6, valued at roughly $31.2 million, as part of monthly allocations. While this isn’t a venture capital unlock, it could introduce short-term sell pressure. On the positive side, Hyperliquid’s buyback mechanism continues to drive deflation, with over 48,000 HYPE tokens burned daily from trading revenues, supporting long-term value.
Sherpa remains cautious on the multi-month outlook, echoing community sentiment that many are eyeing entries below $20. However, with Hyperliquid’s on-chain order book and expanding perpetuals offerings, including privacy-focused features via LIT integrations, the token could benefit from increased adoption in decentralized finance. Traders should monitor on-chain signals, such as whale positions on BTC and ETH perps, which show mixed leverage risks amid the LIT TGE hype.
The crypto market closes out 2025, $HYPE’s stability amid rivals’ launches positions it as a watchlist staple. Whether it dips further or rebounds depends on broader sentiment, but for now, the local bottom thesis holds water.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
