HYPE Token 2026 Forecast: Can Washington Advocacy Drive a Recovery?

Summary:

• Hyperliquid price rose by 6% after the launch of the Hyperliquid Policy Center in the U.S.
• A token unlock and weakening on-chain stats could trigger short-term recovery attempts.
• Since early February, the HYPE price has remained below a key descending trendline resistance.

As per the recent data from crypto.news, Hyperliqid price increased by 6% on Friday morning before settling around $29.23. HYPE token underwent a period of high volatility and technical weakness in early 2026. The Washington advocacy group has provided short-term heightened sentiment.

What is the Washington Advocacy Group?

The Hyperliquid Policy Center in Washington, D.C., is a new advocacy and research non-profit dedicated to securing regulatory clarity for decentralized perpetual futures in the U.S.

Jake Chervinsky, a prominent crypto lawyer, leads the advocacy group. As the first step, the Hyper foundation committed 1 million HYPE tokens, valued at around $29 million. This initiative promotes the independent growth of the ecosystem.

How HYPE Token Price Reacted?

With the Washington Advocacy Group, Hyperliquid is tracking the first step in creating a regulatory framework for the centralized industry. Analysts expect that this could enhance exposure and visibility, supporting long-term adoption.

Although this is expected to improve long-term visibility and institutional adoption, it won’t be enough to drive an immediate price recovery. According to the data from DeFiLlama, the total value locked in the network has dropped from $4.7 billion recorded on to $4.2 billion. The weekly revenue generated by DeFi protocols on the networks has plunged by 55%, reaching $11.83 million since February 9.

When TVL records such a major drop, it signifies a fundamental erosion of the network utility and engagement, which could reduce investor demand. Another major hurdle for the Hyperliquid price is the 9.92 million token unlock, which is scheduled on March 6.

The forthcoming unlock event is worth around $291 million, representing 2.72% of the total circulating supply. As the historical token unlock even suggests, it can drive the prices lower, especially when there is not enough demand from buyers to absorb the liquidity.

HYPE’s current recovery is noted after a major volatile period, where the token fell by about 25% from its yearly high of $37.84.

Hyperliquid Price Analysis

According to the daily chart, Hyperliquid price has been trading under a descending trendline, which served as a dynamic resistance level since early February. It suggests that the current market is bearish and bulls are putting in effort for recovery.
The current bearish trend is influenced by Bitcoin’s failure to keep up with the key support levels. It has sent a cautionary sentiment across the market, also taking a toll on the HYPE price.

The Aroon indicator suggests a bearish trend will continue as the Aroon Down is at 92.86%, indicating that selling pressure is at an extreme level. The Relative Strength Index is a falling channel slipping below neutral territory, signalling that momentum remains weak.

The current support for the Hyperliquid price is at $28, aligning with the 38.2% Fibonacci retracement level. This is where bulls can launch a defense and support a correction. However, if it fails to maintain this level, the price could push towards $21.

If HYPE prices are backed by bulls, it could reach $50-$78. Moreover, analysts expect that if the infrastructure for decentralized derivatives and the 45% supply burn are implemented, it could take the price to previous highs.