A technical correction or a trend reversal?
Currently trading in a range of $34.80 to $35.50, the HYPE token is down by approximately 6% over the last 24 hours. This dynamic is part of a broader retracement following a strong bullish impulse. Although the macro trend remains upward, short term selling pressure is dominating the market.
Technical indicators confirm this bearish momentum. The RSI (Relative Strength Index) has slipped below the neutral 50 mark, while the MACD is dipping deeper, signaling a clear loss of momentum among buyers. Meanwhile, the CMF (Chaikin Money Flow) shows a score of -0.15, reflecting significant capital outflows.
However, the 6 hour chart could indicate a short term bounce over the coming weeks. Indeed, the 6H RSI has hit the oversold territory, which historically points to a local bottom (horizontal green lines). Furthermore, HYPE is sitting on a 6 hour order block between $33.50 and $34.80.
A pullback into this area is still possible. But a return to this zone with a 6 hour RSI in oversold territory will offer an attractive entry point for a long position and a spot buy with a target of $49. The trendline at $37.80 is also a new resistance level to watch.
Are buyers targeting the $32 zone?
For investors like the trader Picsou, the demand zone located between $29 and $33 represents a major level of interest. Often referred to as the golden pocket according to Fibonacci retracements, this area could act as a robust support to halt the current drop.
However, analysts recommend not rushing in. As long as the price has not tested this liquidity with a clear rejection signal, the risk of a downside breakdown remains. A cautious approach is preferred to avoid catching a falling knife.
If buyers manage to defend this support, it could mark the end of the correction and offer an optimal entry point before the next rally. Otherwise, a deeper plunge toward new local lows cannot be ruled out. The liquidations heatmap indicates a final cluster of longs at $33, while HYPE swept those between $37 and $35 overnight.
Can HYPE reignite a rally and target new highs?
To invalidate this short term bearish scenario, Hyperliquid must imperatively execute a breakout above its local resistance located at $41.59. Overcoming this technical hurdle would prove that the bulls have regained control of the order book and that the momentum is reversing.
Once this level is shattered, the token would have a clear path to target its recent highs above $45, or even its ATH around $57. Trading volumes will play a decisive role in validating the strength and sustainability of this potential bounce.
Furthermore, nearly 56,000 HYPE tokens have been burned and accumulation through fees continues to skyrocket. HYPE has dominated the crypto market since the beginning of the year and this drop seems more like a buying opportunity for an imminent bounce than the start of a crash.
In conclusion, Hyperliquid stands out as one of the most solid DeFi infrastructures in the crypto market, combining real activity with innovations (such as the development of HIP-4 for prediction markets) and a growing, promising institutional adoption. In the long term, HYPE therefore offers a major opportunity for patient investors.
As the range tightens around the current price, volatility is likely to intensify in the coming days. Will the key support at $33 hold up against the selling pressure, or should we expect a more severe market capitulation?
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