Hyperliquid (HYPE) plummet 7% despite positive news: Will the Bearish momentum continue?

Despite the positive information about the massive investment, Hyperliquid (HYPE) still faced strong selling pressure during Thursday’s trading session, recording a 7% fall. Previously, Lion Group Holding – a company listed on the Nasdaq – announced the successful raising of 600 million USD from the investment fund ATW Partners to implement a reserve fund for HYPE.

Lion Group bets 600 million USD on HYPE despite the fall trend

Financial trading firm Lion Group Holding (mã LGHL) stock, listed on the Nasdaq, announced on Wednesday that it has successfully raised $600 million from New York-based investment firm ATW Partners, in order to set up a reserve fund dedicated to HYPE. With this bold step, Lion Group will become the organization holding the largest amount of HYPE in the market.

According to the plan, HYPE will become a core asset in the company’s reserve portfolio. In addition, Lion Group also plans to allocate capital to new generation “layer-1 treasury reserves” such as Solana (SOL) and Sui (SUI) — two prominent blockchains with practical application potential and high performance.

“We believe that protocols like HYPE — with decentralized sorting mechanisms — are foundational for developing a sustainable and scalable DeFi ecosystem. At the same time, we appreciate Solana for leading user-oriented applications, as well as Sui for its flexibility and strong performance,” said Mr. Wilson Wang, CEO of LGHL.

Lion Group also stated that the first disbursement worth 10.6 million USD will be implemented next Friday, and BitGo will take on the role of asset custodian. Although the company has previously been less involved in cryptocurrency-related activities, Lion Group asserts that the establishment of this strategic reserve fund is a “comprehensive reboot in the crypto space.”

The announcement was made just one day after Eyenovia unveiled its $50 million HYPE reserve fund strategy on Tuesday.

However, despite this positive information, the price of HYPE continues to plummet, falling more than 7% in Thursday’s trading session and bringing the total decline for the week to 14%. The breach of the lower support level of the important price channel has put this altcoin at risk of dropping to the $30 range.

HYPE/USDT Daily Chart | Source: TradingViewThe technical signals are also indicating a deeper fall risk. The Relative Strength Index (RSI) is hovering around the neutral level, while the Stochastic Oscillator is approaching the oversold zone. If both indicators simultaneously signal a downward cross, the correction trend will be further reinforced.

Not only that, the selling pressure is further amplified by escalating geopolitical tensions in the Middle East — a factor that is casting a shadow over the entire cryptocurrency market.

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