HYPE Price Prediction: Could This 45% Supply Cut Send Hyperliquid to the Moon?

Hyperliquid (HYPE) token is at a crossroads. Trading at $47.73, it's down 21% from its September peak of $59.30, but something big might be brewing. The community is buzzing about a proposal that could cut token supply by 45% – and traders are paying attention.

HYPE slipped 3.4% in 24 hours and dropped 10% this week, but it's still up 8.2% monthly. Trading volume spiked 25% to $897.1 million daily while futures volume jumped 18.6% to $3.11 billion. That's serious money moving around.

What's This HYPE Supply Cut About?

On September 22nd, Jon Charbonneau from DBA investment firm and researcher Hasu dropped a bombshell proposal. They want to burn 31 million HYPE tokens from the Assistance Fund and revoke authorization for 421 million tokens earmarked for future emissions.

This would slash total supply from 1 billion to 550 million tokens – a massive 45% cut. The move would also ditch the hard cap, letting the community control future issuance through governance votes. Current holders won't face dilution since the 45 million circulating tokens stay unchanged.

At today's prices, this cuts Hyperliquid's fully diluted valuation from $47 billion to $25 billion. The goal? Fix those "misleadingly high" supply metrics that scare off institutional money.

HYPE Price Targets: What's Next?

The charts show mixed signals. HYPE trades below its 10-day and 30-day moving averages but sits comfortably above the 100-day ($39.12) and 200-day ($32.45) lines. The RSI at 44.7 suggests we're near oversold territory.

Key level to watch: $45 support. Hold that, and analysts see a run to $50-52. Get momentum behind the supply cut, and the $59 all-time high becomes possible. Lose $45, and HYPE could slide to $41.