The native token of Hyperliquid<\/a> has just suffered a brutal retracement. After hovering near its recent highs, HYPE<\/strong> has broken below its critical support to trade around $38.90<\/strong>, slipping under the psychological $40<\/strong> mark. This breakdown comes amid a sudden contraction in volume, as traders massively reduced their exposure to this Layer 1 blockchain specialized in decentralized trading. The move was amplified by a lack of immediate liquidity on the on chain order books.<\/p>\n\n\n\n This cascading sell off raises a legitimate question: is this a simple technical breather or the beginning of a deeper bearish trend? The technical analysis for HYPE<\/strong> points to an initial correction target at $35<\/strong> if the selling pressure persists. The RSI has quickly exited its overbought territory, and the MACD shows a bearish crossover that reinforces the negative short term bias. Traders engaged in swing trading are watching these levels closely to identify a potential entry point.<\/p>\n\n\n\n However, the fundamentals of Hyperliquid<\/strong> remain solid. The protocol continues to process significant DEX volumes, and its leading position in the decentralized perpetual trading sector is not challenged by this correction. The crypto whales could take advantage of this dip to accumulate positions before the next bull run<\/a>. For investors looking to buy crypto on this type of asset, patience remains the best strategy during an unconfirmed purge phase.<\/p>\n\n\n\n