HYPERLIQUID(HYPE) price isn’t backing away from around $26. After steadily drifting down over the past 3 days, it managed to hold above $26 on Wednesday. It’s not a collapse yet, but there’s something else the market is focused on.

The foundation has come forward with a proposal to burn the entire assistance fund(assistance fund). This would permanently remove 37.11 million HYPE, which represents 3.71% of the total supply. The vote is currently being conducted by validators, and results are expected on December 24. The unusual part is that this address has no private key, so nobody can directly access it. If the vote passes, it won’t be limited to just reducing the amount of tokens—it will also lock in a rule that this address will not be accessible in the future.

The derivatives market reacted immediately. Open interest(OI) rose by 1.63% over 24 hours, reaching $1.53 billion, and the funding rate also climbed to 0.0839%, pulling in more long positions. It seems the burn expectation is at work.

The problem is that the technical indicators are still weak. The RSI is at around 33, near the oversold threshold, and the MACD remains bearish. If the daily close drops below $26, the selloff could accelerate, and in the worst case there’s room to fall to the early $20s. The derivatives market is excited, but the chart still isn’t giving clear confirmation. If prices move up, it could first target $30, and then the 50-day EMA at $34 may act as resistance.