HYPE Price at $26 Showing Signs of Slowing With a Potential Correction Ahead: What’s Next?

Key Insights:

• HYPE price dips 5.52% as short-term buyers stay cautious, testing support near the $26 level.
• TVL peaked at $6B in the fall of 2025 and now cooled to $4.25B, showing market normalization.
• Daily DEX volume falls to $45.4M, while protocol fees drop, reflecting lower trading activity.

The Hyperliquid (HYPE) token is trading at $26.19 after a recent pullback. Market data shows slowing momentum and lower activity. Traders are now watching for signs of a deeper correction as volume cools.

The token is down 5.52% in the last 24 hours. Daily trading volume stands at $265,935,720. Analysts note that price action has started to weaken after months of strong growth.

Price Action Signals Possible Pullback

Crypto analyst Sjuul from AltCryptoGems reported that HYPE is showing signs of slowing and may face a correction. He noted that price action is locally breaking down and may face pressure ahead. The support zone currently lies near the $26 level. This area has previously acted as a floor for price retracement. 

Traders often watch these levels for potential buying opportunities. HYPE rallied strongly during mid to late 2025, gaining support as trading activity increased across the platform, but then momentum eased since the September peak.

The recent decline comes as short-term buyers appear cautious. Short-term buyers appear cautious, and lower highs on shorter time frames suggest a possible near-term pullback.  If the price breaks above the $32–$34 resistance, the next target could reach $36–$38, based on past price patterns.

TVL and On-Chain Data Show Cooling Activity

Hyperliquid’s Total Value Locked (TVL) rose steadily in early 2025 from around $2 billion and surged sharply between June and September. The peak reached nearly $6 billion in early fall, supported by high trading volume and fee spikes, reflecting strong capital inflows and liquidity activity.

Following this peak, TVL cooled to approximately $4.25 billion as of February 2026. Daily decentralized exchange (DEX) volume currently sits near $45.4 million, while protocol fees total around $746,000, both lower than the September highs. This pattern shows a clear boom-and-cooldown cycle, with rising activity during mid-year followed by profit-taking and normalization.

Despite the slowdown in volume and fees, TVL remains above early 2025 levels, indicating the protocol maintains a higher baseline even as trading intensity has moderated. The token price remains above its early 2025 levels despite the recent drop.