HYPE Leads Market Decline With 7% Drop
The Hyperliquid DEX's native token (HYPE) recorded a 7% price decrease over the last 24 hours, hitting $27.7 on February 23, 2026. This move established HYPE as the worst-performing asset among the top 20 cryptocurrencies by market capitalization. The token's decline contributed to a broader market downturn over a bearish weekend that also saw major assets like Bitcoin (BTC) and Ether (ETH) trade in the red.
Negative Funding Rates Signal Sustained Bearish Pressure
The token's poor performance is underpinned by weakening on-chain metrics. Traders are increasingly placing short bets against HYPE, a sentiment reflected in its negative funding rates, which indicate that short positions are dominant and paying a premium. This bearish positioning is compounded by a fall in Open Interest (OI), signaling that capital is exiting the HYPE market. This marks the third consecutive week of losses for the token, which has been in a downtrend since early February.
Token Tests Critical $27.4 Support Level
During the sell-off, HYPE's price retested the key technical support level at $27.4. A sustained break below this price point could trigger a cascade of liquidations from leveraged long positions, potentially accelerating the downward price momentum. Investors are closely watching this level as a decisive indicator for HYPE's short-term trajectory.
