Hyperliquid HYPE token faces price correction amid legal news

Hyperliquid’s HYPE token has experienced a price correction, falling approximately 7.5% from a weekly high of $83.55 to around $78.70. This retreat follows a recent rally that saw the token reach a record high near $89 in early September.

Technical indicators show a shift toward bearish momentum in the short term, with the 4-hour Supertrend indicator sitting at $82.30 resistance. Traders are closely monitoring support levels near $75.83 to determine if the broader uptrend remains intact. Despite the price volatility, network activity and Total Value Locked (TVL) have shown signs of strengthening.

The price decline coincides with federal charges against two former Robinhood engineers, Huaisong “Jerry” Xiang and Hefu Chai. Prosecutors allege the individuals used confidential listing information to trade perpetual futures on Hyperliquid, earning over $50,000 each. The legal complaints target the conduct of the individuals and do not accuse Hyperliquid or its developers of involvement in the alleged scheme.