Hyperliquid’s HYPE token fell about 7.5% over the past week, retreating from $83.55 to around $78.70 as legal concerns and weaker technical momentum weighed on its recent rally.

HYPE price retreats from record high

Hyperliquid (HYPE) price traded near $78.70 on Sep. 16 after falling from an opening price of $83.55 on Sep. 10. The move represented a weekly decline of about 7.5%, although the token remained well above its August trading range.

The correction followed HYPE’s rally to a record high near $89 in early September. Daily candles show that buyers repeatedly failed to hold prices above the $88 area before sellers pushed the token below $82.

HYPE briefly dropped toward $76 on Sep. 16 before rebounding to around $78.70. The recovery showed that buyers remained active near the lower end of the week’s range, but price had yet to reclaim the technical levels that would signal a stronger reversal.

The pullback also followed federal charges against two former Robinhood engineers accused of using confidential listing information to trade perpetual futures on Hyperliquid.

Separate federal complaints alleged that Huaisong “Jerry” Xiang and Hefu Chai traded ahead of Robinhood’s public announcements. Prosecutors said each defendant earned more than $50,000 through the alleged activity. The allegations concern the individuals’ conduct and do not accuse Hyperliquid or its developers of participating in the scheme.

Short-term HYPE structure remains bearish

The 4-hour chart shows HYPE trading below the Supertrend indicator, which had shifted to resistance at $82.30. The indicator will continue to favor sellers unless the token closes above that level and holds it as support.

HYPE’s 4-hour Relative Strength Index stood at 47.77, while its RSI-based average was 45.16. The readings place momentum near neutral territory after recovering from a recent approach toward oversold conditions.

Price action has also formed a series of lower highs since the Sep. 7 peak. A rebound toward $80 stalled before reaching the Supertrend line, suggesting that sellers continue to defend rallies.

The $80 psychological level is the first barrier for buyers. A sustained move above it could allow HYPE to test the $82.18–$82.30 area, where the daily Bollinger Band midpoint and 4-hour Supertrend resistance converge.

A close above that zone would weaken the bearish short-term setup and expose $84.30, followed by the upper Bollinger Band near $88.53. The record area between $89 and $90 would become relevant only if HYPE clears those intermediate levels.

Daily Bollinger support protects the larger uptrend

The daily chart presents a less bearish picture than the 4-hour setup. HYPE remained above the lower Bollinger Band at $75.83 despite trading below the middle band at $82.18.

Daily RSI stood at 50.65, down from an overbought reading reached during the early-September rally. The indicator’s average remained higher at 57.48, showing that momentum has cooled faster than its recent trend.

A daily close below $75.83 would mark a more serious technical breakdown. The next visible support zone lies around $72, where HYPE consolidated before its late-August advance. A deeper correction could then bring the $68–$70 region back into focus.

The wider chart still shows a sequence of higher lows from the August bottom near $51. HYPE would therefore need to lose the mid-$70s support area before the larger recovery structure faces a clearer threat.

Holding $75.83 while reclaiming $82.30 would instead support a consolidation scenario between the lower and middle Bollinger Bands.

Liquidation map places liquidity near $80

CoinGlass’ 24-hour liquidation heatmap shows a dense liquidity cluster between roughly $78.40 and $78.90, close to HYPE’s current price. A second concentration appears between $79.70 and $80.50.

Those bands could attract price during a rebound because leveraged positions tend to accumulate around crowded levels. The heatmap does not show that all positions in those zones have already been liquidated; it identifies areas where forced closures could increase if price reaches them.

Above the market, the strongest nearby liquidity sits around $80.30. A move through that level could accelerate toward $81 and $82 as short positions face pressure.

Liquidity is also visible below price around $75–$76, aligning with the daily lower Bollinger Band. A break under $77 could therefore expose HYPE to a sweep of leveraged long positions before buyers attempt another recovery.

Token burns offer support during the correction

Onchain Lens reported that Hyperliquid bought and burned 36,720 HYPE worth about $2.84 million during a 24-hour period, at a volume-weighted average price of $77.31.

The account said lifetime burns had reached 48.67 million HYPE, valued at approximately $3.78 billion and equal to 4.87% of the token’s maximum supply. It also reported $2.14 million in rolling 24-hour fees and $2.07 million in HYPE-directed revenue.

The buyback mechanism may absorb part of the available sell-side supply, but the charts show that it has not yet restored bullish short-term momentum.

For HYPE, the immediate setup depends on whether buyers can defend $75.83 and push the price above $82.30. Remaining below that resistance would leave the token vulnerable to further consolidation, while a confirmed reclaim could reopen a path toward $84.30 and $88.53.

The U.S. Senate’s failure to advance the Digital Asset Market Clarity (CLARITY) Act has prompted expectations of faster, more direct rulemaking from the SEC and CFTC, according to analysts at Bernstein. With the bill not moving forward after a cloture vote on Tuesday, Bernstein said regulators are likely to “make up for the time lost” in developing their own frameworks for crypto markets.

In a Wednesday note shared with Cointelegraph, Bernstein argued the shift could still deliver meaningful regulatory guidance for the industry, even if the legislative approach that would have “fool-proofed the industry against political regime shifts” did not materialize. The analysts expect new agency rules to address issues ranging from how tokens are categorized to how certain decentralized finance (DeFi) activities might be treated.

Key takeaways

• With CLARITY failing to clear a cloture vote, Bernstein expects the SEC and CFTC to accelerate rulemaking instead of relying on a new statutory framework.
• New guidance may include token taxonomy for fundraising and investor protections aimed at developers and self-custodial protocols.
• Bernstein anticipates “innovation exemptions” that could support equity tokenization efforts under defined conditions.
• The SEC’s earlier proposal to clarify treatment of certain “investment contracts” provides a starting point for how regulators may structure safer harbors.

Why CLARITY’s setback changes the regulatory playbook

Earlier coverage from Cointelegraph noted that the U.S. Senate failed to advance the CLARITY Act after a cloture motion did not pass on Tuesday. The bill, according to Bernstein, would have offered the country’s first dedicated regulatory framework for digital assets.

Bernstein’s central point is that the regulatory agencies now have a new timeline pressure. Rather than continuing negotiations tied to the legislation’s prospects, the SEC and CFTC are expected to publish regulations meant to provide clarity more immediately. Bernstein also suggested that bringing the act back for another vote is unlikely, citing a limited window and concerns about ethics provisions.

For market participants, the practical implication is that uncertainty may persist—but it could shift form. Instead of waiting for Congress to define broad categories and boundaries, firms may need to adapt to agency rules that are narrower in scope yet faster to implement.

SEC groundwork: proposed rules for “certain investment contracts”

Bernstein’s expectations build on actions the SEC has already taken. On Aug. 19, Cointelegraph reported that the SEC proposed new rules to establish what the agency described as a “clear and fit-for-purpose framework for certain investment contracts involving crypto assets.” Those proposals are designed to let entities raise capital while preserving investor protection.

As reported by Cointelegraph, the SEC’s proposal includes exemptions that would allow crypto firms to issue up to $5 million in tokens over four years and up to $75 million over 12 months, along with a safe harbor intended to exempt cryptocurrencies from being treated as “investment contracts.”

Bernstein’s note implies that the agencies may use this approach as a template—tightening, expanding, or operationalizing rule details in response to the missed legislative path. Investors and token issuers, in turn, may focus on how their offerings fit within the boundaries of these frameworks, particularly around how contracts and rights are structured.

What Bernstein expects from the SEC and CFTC next

Bernstein said it expects agency regulations to cover several concrete areas for crypto businesses. The analysts highlighted token taxonomy for raising capital—an issue that matters because how regulators classify tokens can determine whether an offering or program is treated like an investment contract or falls under other regulatory categories.

Bernstein also pointed to developer protection measures for DeFi and self-custodial protocols. For builders, this could be significant: it suggests rulemaking may aim to address common architectural realities in DeFi where developers may not control user custody or operational decisions, while still addressing how investor protection principles apply.

In addition, Bernstein expected “innovation exemptions” for equity tokenization, implying regulators may carve out room for certain issuance models that resemble traditional equity structures—potentially with conditions intended to prevent broad sales practices from evading oversight.

Finally, Bernstein referenced faster approval times for real-world asset (RWA) perpetual futures and amendments to rules around federal sports even contracts and their classification as swaps. While these items are more technical and specific, they point to the agencies’ willingness to address market structure questions, not just fundraising token frameworks.

For traders and liquidity providers, the takeaway is that regulatory clarity might arrive in multiple layers: rules affecting issuance and governance may be complemented by guidance on derivative products and contract classifications.

Signals of urgency from SEC leadership

The sense that the SEC would move quickly without CLARITY is reinforced by public messaging from SEC leadership. Cointelegraph previously reported that on July 27, SEC Chair Paul Atkins told CNBC the agency was “ready, willing, and able to come out with rules” on digital assets if the Senate failed to pass the CLARITY Act.

This matters because it frames the likely regulatory response as proactive rather than reactive. If Bernstein’s expectation holds, firms should anticipate rulemaking momentum that is less dependent on congressional timing, even if the details ultimately differ from what a bill like CLARITY would have provided.

Where the picture remains uncertain is how comprehensively the agencies will harmonize their approaches across token issuance, DeFi developer responsibilities, and the treatment of derivative products. Bernstein expects a compensating wave of regulatory work, but the industry will still need to watch how the rules are finalized and how they apply in practice.

Next, market participants should monitor the SEC and CFTC for concrete drafts and timelines—especially around token taxonomy and any safe harbor or exemption mechanics that could determine how token offerings, DeFi participation, and certain derivative structures are regulated once CLARITY is off the table.

Key takeaways

• Bitcoin traded near $75,950 after falling more than 1% on Tuesday.
• Ethereum and XRP declined more than 4% and 9%, respectively.
• BTC remains above its 50-day, 100-day, and 200-day EMAs.

Bitcoin (BTC) traded near $75,950 on Wednesday after declining more than 3% during the previous session as the CLARITY Act failed to advance in the US Senate.

Ethereum and XRP suffered steeper losses, falling more than 4% and 9%, respectively. Despite the market-wide pullback, Bitcoin remains above its major exponential moving averages, preserving its broader bullish structure.

Traders now await the Federal Reserve’s interest-rate decision and Chair Kevin Warsh’s forward guidance, which could determine the cryptocurrency market’s next major move.

CLARITY Act failure pressures crypto prices

The cryptocurrency market weakened on Tuesday after the CLARITY Act failed to secure sufficient support to advance in the Senate.

The setback reduced expectations that Congress would soon establish a comprehensive regulatory framework for the US digital-asset market. Bitcoin fell more than 3%, while greater selling pressure across altcoins pushed Ethereum and XRP sharply lower.

Prices stabilized on Wednesday, but uncertainty surrounding US monetary policy kept buyers cautious.

The Federal Reserve’s rate decision and subsequent guidance could influence liquidity expectations, Treasury yields, and demand for risk assets. A more restrictive outlook could extend the crypto market’s correction, while a less hawkish message may support a recovery.

Bitcoin maintains bullish EMA structure

Bitcoin continues to trade above its 50-day, 100-day, and 200-day exponential moving averages, which are clustered between approximately $71,400 and $73,600.

The 50-day EMA stands at $73,581, while the 200-day EMA is positioned slightly lower at $73,108. The 100-day EMA provides additional support at $71,391.

This configuration remains constructive because BTC is trading above all three averages and the shorter-term 50-day EMA remains above the longer-term indicators.

However, Bitcoin must defend this support cluster to prevent the recent pullback from developing into a deeper correction.

Bitcoin’s Relative Strength Index has slipped to approximately 49, placing it near neutral territory.

The reading indicates that neither buyers nor sellers have established strong momentum. However, the decline from higher levels shows that bullish demand has weakened following Tuesday’s sell-off.

The Moving Average Convergence Divergence indicator remains negative and below the zero line. This suggests that Bitcoin’s broader bullish structure is still intact, but short-term momentum currently favors consolidation or further downside.

The 50-day EMA at $73,581 represents Bitcoin’s first important support level. If sellers push BTC below that level, the 200-day EMA at $73,108 could provide the next line of defense. A deeper correction would place the 100-day EMA at $71,391 in focus.

Failure to hold the entire moving-average cluster could expose the lower horizontal support levels at $66,500 and $62,300.

On the upside, Bitcoin faces significant resistance near $85,000. A sustained recovery above that barrier would signal renewed bullish strength and potentially restart the broader uptrend.

Key takeaways

• ETH traded near 0.03167 BTC as its performance against Bitcoin weakened.
• A potential double top has formed with two peaks around 0.03344 BTC.
• A close below the 0.03078 BTC neckline could trigger a 10% decline toward 0.0283 BTC.

Ethereum is showing signs of further underperformance against Bitcoin as a potential double-top pattern develops on the ETH/BTC daily chart.

Ether traded near 0.03167 BTC on September 16 after failing to sustain its latest advance. Weakening momentum, growing regulatory uncertainty, and a sharp increase in ETH deposits to Binance support a cautious near-term outlook.

A confirmed breakdown below 0.03078 BTC could send the pair approximately 10% lower toward 0.0283 BTC.

ETH/BTC double top signals potential decline

The ETH/BTC chart has formed two comparable peaks near 0.03344 BTC, with the first appearing in August and the second in September.

This structure resembles a double top, a bearish reversal pattern that develops when buyers repeatedly fail to break through the same resistance level.

The pattern’s neckline sits near 0.03078 BTC. Ethereum would need to record a decisive daily close below this level to confirm the bearish setup.

Subtracting the pattern’s height from the neckline produces a downside target around 0.0283 BTC. Reaching that level would represent an approximately 10% decline from Ether’s current value against Bitcoin.

Ethereum momentum weakens

The ETH/BTC Relative Strength Index has fallen toward 50 after previously moving above the overbought threshold of 70.

Although the RSI remains slightly above neutral, its retreat indicates that the momentum supporting Ethereum’s August-to-September recovery is fading.

Ether is still holding marginally above its 20-day exponential moving average at approximately 0.03162 BTC. A strong rebound from this moving average could delay or prevent the bearish breakdown.

A sustained move above the two peaks at 0.03344 BTC would invalidate the double-top scenario and restore a more bullish relative outlook for ETH.

The bearish technical setup emerged as the US Senate failed to advance the Digital Asset Market Clarity Act on September 15.

The procedural vote received 50 votes in favor and 49 against but fell short of the 60 votes required to move the legislation forward. A procedural vote change by Senator Thom Tillis preserves the possibility of reconsidering the measure.

The setback triggered a wider cryptocurrency sell-off. Bitcoin declined approximately 4% to around $75,900, while shares of major crypto companies, including Coinbase and Circle, also fell.

Regulatory uncertainty can encourage traders to favor Bitcoin over more risk-sensitive assets such as Ethereum. This could increase pressure on the ETH/BTC pair and bring the 0.03078 BTC neckline back into focus.

Binance receives 709,400 ETH in one day

Ethereum deposits to Binance have also increased sharply, creating another potential source of selling pressure.

Approximately 709,400 ETH moved onto the exchange on September 11, marking the highest daily inflow since June, according to CryptoQuant. Several recent sessions also recorded inflows exceeding 500,000 ETH, considerably above typical July and August levels.

Rising exchange inflows increase the amount of ETH immediately available for trading. Although transfers to exchanges do not necessarily mean holders intend to sell, unusually large deposits can precede higher market supply and increased volatility.

The elevated inflows reinforce the cautious outlook created by Ethereum’s weakening relative momentum and the CLARITY Act setback.

ETH/BTC bulls must defend 0.03078

The bearish scenario depends on ETH/BTC closing decisively below the 0.03078 BTC neckline. Confirmation could open the path toward the measured target of 0.0283 BTC.

However, support from the 20-day EMA near 0.03162 BTC could allow Ether to rebound. A break above 0.03344 BTC would invalidate the double top and signal renewed Ethereum strength against Bitcoin.

U.S. spot bitcoin ETFs shed $450 million on Tuesday, according to SoSoValue, the heaviest single-day outflow since June 25, after the U.S. Senate declined to advance the Digital Asset Market Clarity Act.

Bitcoin is little changed since midnight UTC, after dropping following the vote, which garnered around 10 fewer votes than the 60 required. Among those opposing the motion were seven Democrats who had spent months negotiating the text.

The CoinDesk 20 Index also held its loss, dropping less than 0.1% since midnight after falling 4.6% on Tuesday in the steepest decline since June 5.

Attention now switches to the Federal Reserve, which announces its interest-rate decision later today, with an increase having been the market’s base case going into the meeting.

Stellar fell 9.6% over 24 hours and XRP lost 8.1% Among CoinDesk 100 constituents, a full 95 lost value over the period.