Hyperliquid (HYPE), the native token of the Hyperliquid blockchain, recently experienced a notable price decline, falling below the $40 level despite promising news about a significant institutional investment. On June 18, 2025, HYPE dropped over 5%, trading around $39.89, following a profit-taking phase after hitting a recent all-time high of approximately $45.50. This pullback reflects growing market caution amid a broader crypto sell-off, raising concerns over whether the token can sustain its momentum in the short term.

The price dip came shortly after Eyenovia, Inc., a Nasdaq-listed ophthalmic technology company, introduced a groundbreaking move to incorporate HYPE tokens into its corporate treasury strategy. The firm revealed plans to invest $50 million into HYPE as part of a broader initiative to diversify its balance sheet with cryptocurrency assets. This move positions Eyenovia among the growing list of public companies embracing digital assets as a hedge and growth vehicle, following precedents set by industry leaders like MicroStrategy and Tesla.

Eyenovia’s $50 Million Investment: A Game-Changer for HYPE

Eyenovia’s statement on June 17, 2025, marked a strategic pivot aimed at rebranding and expanding its business into decentralized finance (DeFi). The company plans to rename itself Hyperion DeFi and intends to become a major validator on the Hyperliquid layer-1 blockchain. As part of this transition, Eyenovia will acquire 1 million HYPE tokens through a private placement funded by institutional investors.

This $50 million investment will be financed via a private placement in public equity (PIPE), involving the issuance of convertible preferred stock priced at $3.25 per share. If all associated warrants are exercised, the total raise could reach $150 million, further solidifying Eyenovia’s capital base. The company has also appointed Hyunsu Jung as Chief Investment Officer to oversee this new crypto treasury initiative, with plans to stake the acquired HYPE tokens using Anchorage Digital’s secure platform.

Michael Rowe, Eyenovia’s CEO, highlighted that the strategy aims to enhance long-term shareholder value through capital appreciation linked to Hyperliquid’s rapid growth. He noted that Hyperliquid’s ecosystem generates approximately $8.4 million in daily revenue, underscoring its robust fundamentals. This approach mirrors a growing institutional trend to incorporate digital assets into corporate treasuries to diversify liquidity and hedge against inflation and market volatility.

Market Reaction and Technical Outlook

Despite the bullish institutional endorsement, the immediate market reaction for HYPE has been muted, with the token retreating below the $40 psychological support level. Technical indicators present a mixed to bearish short-term outlook. The Relative Strength Index (RSI) hovers around 45.6, indicating neutral momentum with a slight bearish tilt. Meanwhile, the Moving Average Convergence Divergence (MACD) reflects weakening bullish momentum, suggesting that HYPE’s recent rally is losing steam.

Data from Coinglass reveals a decline in Open Interest (OI) on Hyperliquid futures contracts, signaling reduced trader confidence and participation. This decline in OI often precedes or coincides with price pullbacks, as market participants take profits or close positions amid uncertainty.

From a price action perspective, HYPE’s failure to hold above $40 puts it at risk of further downside if selling pressure intensifies. The $35 to $37 range may act as the next support zone, but failure to defend these levels could lead to a deeper correction.

Long-Term Prospects Remain Positive

Despite short-term price weakness, the outlook for HYPE remains cautiously optimistic, largely supported by Eyenovia’s institutional backing and the growing adoption of Hyperliquid’s blockchain ecosystem. The company’s strategic commitment to becoming a top validator and integrating HYPE into its treasury highlights confidence in the project’s fundamentals and long-term viability.

Industry analysts suggest that institutional endorsements like Eyenovia’s investment can catalyze renewed interest and liquidity in the token, potentially driving prices higher once market volatility subsides. Additionally, Hyperliquid continues to exhibit strong on-chain activity and substantial perpetual futures volume, factors that contribute to its overall ecosystem health and revenue generation.

Conclusion

Hyperliquid’s token, HYPE, faces short-term challenges amid profit-taking and broader crypto market weakness, resulting in a drop below the $40 support level. However, Eyenovia’s $50 million treasury strategy statement marks a significant milestone, signaling growing institutional confidence in Hyperliquid’s technology and growth prospects.

While technical indicators point to a cautious near-term outlook, the substantial investment and strategic shift by a Nasdaq-listed company provide a solid foundation for HYPE’s potential recovery and longer-term appreciation. Investors and traders should closely monitor price support levels, market sentiment, and any further developments from Eyenovia’s rebranding and staking initiatives to gauge the next phase of HYPE’s price trajectory.