Investors are allocating capital to Hyperliquid (HYPE) ETF faster than BTC, ETH, SOL, and XRP. Despite the inflow of capital into the HYPE ETFs, HYPE has lost a major support level. Some suspect that the SK Hynix perp flash crash on Hyperliquid made the coin lose this level.
HYPE ETF inflows grow exponentially
Relative to the inflow of capital to BTC, SOL, ETH, and XRP, HYPE has been attracting funds, and that too in quick succession. For an ETF to hit a cumulative ETF net flow/market cap of 2%, it takes more than 200 days or more since the day of inception. However, HYPE reached this level during the 40-50 day range since its inception.
This means institutional investors are adopting HYPE much faster than they did Bitcoin, Ethereum, Solana, or XRP during the early stages of their ETF launches. The rapid pace of inflows relative to HYPE’s market capitalization suggests that investors have shown a stronger willingness to allocate capital to the asset despite its smaller size. Such sustained demand can strengthen market confidence, improve liquidity, and provide continued buying pressure, which may support HYPE’s price if the inflows persist.
HYPE strays from descending triangle
However, as shown in the chart above, HYPE has lost a major support level, the lower trendline of the descending triangle at $55. Given that the bearish condition persists, HYPE could even crash to $52. Some suspect that the SK Hypix perps’ false crash made HYPE lose this support level.
The SK Hynix perp flash crash on Hyperliquid was caused by a sudden price dislocation in the perpetual futures contract tracking SK Hynix shares. A single anomalous price print from the underlying market fed into the contract’s pricing, triggering a sharp 17.9% drop within seconds. As the price plunged, nearly $57.4 million worth of leveraged long positions across about 960 accounts were automatically liquidated, creating a cascade of forced selling that briefly amplified the decline before the contract recovered.
Technically, HYPE has the chance to once again recover, even in the event that the prices crash to $52. Based on historic data, it could be seen that HYPE recovered from this level and continued trading inside the descending triangle. HYPE might reciprocate the same.
