HYPE Stalls at Channel Edge Despite First Weekly ETF Inflows

Woofun AI reports that HYPE price action has stalled near the upper boundary of its descending channel, coinciding with the first positive week for HYPE spot ETFs following three consecutive periods of outflows.

The anticipated pullback materialized as price failed to breach the $57–$58 resistance zone identified in the August 5 analysis, where the rebound intersected both a horizontal barrier and the 100-day simple moving average. This failure left the recovery vulnerable, with support situated near $52. Bearish RSI divergence further weakened momentum, increasing the risk of decline. Consequently, HYPE was rejected and fell toward $53.5 on August 7, returning to the upper boundary of the descending channel that has guided the broader decline from July highs. Buyers responded around this area, allowing HYPE to recover part of the drop and trade near $54.5 at the time of writing.

Technically, the first major resistance sits around $57.5. Just above it, the 100-day SMA is near $58.68, forming the same resistance cluster that halted the latest recovery. A successful break through this area would bring the 50-day SMA near $61.8 into view. Higher up, the $64.5–$65 zone marks another resistance area where HYPE repeatedly struggled during July.

Woofun AI data shows support zones are closer, with the first important area sitting around $52.5–$51, which helped contain the decline in early August. Losing this zone would expose support near $47.5, followed by roughly $45. The RSI is currently near 42 and remains below the neutral 50 level. Although the indicator has recovered from its recent low, there is still little evidence of strong bullish momentum.

The ETF picture has improved after a difficult July. HYPE spot ETFs recorded $2.84 million in net inflows for the week ending August 7. This follows three consecutive negative weeks: $7.26 million in outflows through July 17, $8.61 million through July 24, and $14.75 million through July 31. Weak ETF demand was also flagged in JPMorgan's recent assessment of Hyperliquid. As noted in the analysis of JPMorgan's concerns around Hyperliquid and HYPE ETF flows, fading fund demand had removed one source of support for the token.

The latest inflow breaks that run for now, although $2.84 million is small compared with the $30.62 million withdrawn over the previous three weeks. Further positive readings would be needed to show that ETF demand has genuinely changed direction.

The latest bounce has prevented an immediate breakdown, but HYPE remains below both the 100-day and 50-day moving averages. The key battle is now between the channel boundary and the $57.5–$58.7 resistance cluster. Reclaiming the latter would strengthen the recovery attempt, while slipping back into the channel would keep the $52.5–$51 support area under pressure. ETF flows have at least stopped deteriorating for now, but a stronger technical recovery would become more convincing only if that improvement in fund demand continues rather than ending with a single positive week.