Hyperliquid's HYPE token fell below $59 on August 19 after briefly breaking above $60 the previous day, trading near $58.49 after reaching a 24-hour high of $60.41. The token was down about 1.4% over 24 hours but remained up 7.1% over seven days, while trading volume rose around 9% from the prior day. The August rally, which had lifted HYPE about 14% by August 18 from $53.67 and back above $57.10, was supported by a joint proposal from the Hyperliquid Policy Center and trade[XYZ] to the US Securities and Exchange Commission (SEC, U.S. securities regulator) for a framework covering pre-IPO perpetual futures. Those contracts, which are derivatives without an expiry date, could enable price discovery for private companies before public listings. Hyperliquid's HIP-3 system already supports such products through trade[XYZ] and allows outside developers to deploy perpetual markets after staking 500,000 HYPE. On-chain data also showed substantial withdrawals and purchases, including around 57,000 HYPE worth $3.36 million withdrawn from Coinbase, a 202,705-HYPE withdrawal by a Maven11-linked wallet, and 171,543 HYPE worth about $9.56 million bought by wallets linked to Monetalis. Nansen recorded roughly $5.7 million in net HYPE exchange outflows over seven days. However, whale, smart-trader and public-figure wallets were collectively net short on August 18, funding was around 0.00125% per hour, and no additional HYPE exchange-traded fund inflows had been recorded since August 10. One whale sold 923,743 HYPE worth about $53 million, while HyperLabs unlocked 433,025 HYPE worth around $23.5 million and moved tokens toward Flowdesk and OKX. About $3.38 million also entered exchanges. Technically, HYPE remains above its 20-day, 100-day and 200-day exponential moving averages (EMAs) at $57.04, $56.79 and $51.30, respectively, and is narrowly above the 50-day EMA at $58.30. A sustained move above $58.30, followed by the 20-day EMA crossing above the 50-day EMA, would strengthen the recovery signal. The daily MACD has crossed above its signal line and turned positive on the histogram, although both lines remain below zero. On the four-hour chart, the RSI is 53.53 after approaching 70, indicating positive but weakening momentum. Holding $58.30-$58.50 could support another test of $60, while a break below that zone would shift attention to $57.04, $56.79 and then $53.50-$54. A daily close above $60.40 could open the way toward the previous resistance area around $62.