Subscribe our newsletter and get updated with latest news

Subscribe

Crypto News Media

Hyperliquid (HYPE) Price Pulls Back After ATH, But Bullish Momentum Signals Further Gains Ahead

James Gathecha Avatar
James Gathecha
  • HYPE recently hit a new all-time high of $44 but is now facing a short-term retracement due to bearish momentum divergence and declining volume.
  • Despite the dip, strong buyer demand, rising whale inflows, and a bullish market structure suggest that Hyperliquid’s uptrend is likely to continue.

Short-Term Shakeout, Long-Term Strength?

Hyperliquid’s native token HYPE is facing a momentary cooldown after posting an all-time high of $44. Despite the pullback, analysts suggest the overall bullish structure remains intact. With strong whale inflows and rising Open Interest, the token’s long-term rally still has room to run—even as Bitcoin’s rejection near $111K shakes up the broader market.

Momentum Divergence Signals Retracement

While HYPE saw an impressive 48% rally in just 24 days, a bearish divergence is now emerging on the 3-day chart. From May 25th onward, the RSI has printed lower highs, even as the price climbed higher—indicating a momentum slowdown. This classic divergence, coupled with declining volume on the 20-day moving average, hints that HYPE may be entering a consolidation phase.

Also read: Chainlink (LINK) Price Risks Drop to $12 as $14.25 Support Faces Bearish Pressure

Still Bullish Across Timeframes

Zooming out, HYPE remains above its critical demand zone at $27.2, which was successfully retested after the January breakout. The 3-day and 4-hour charts show that the token’s market structure is still bullish, with the price respecting support and momentum indicators like OBV showing no major sell pressure yet.

On the 4-hour chart, the RSI is nearing neutral, suggesting the retracement is moderate rather than trend-breaking. Fibonacci levels between $35 and $38.3 present key support zones to watch if the correction deepens.

Bitcoin’s Role in the Reset

Bitcoin’s rejection at $111K and potential dip toward $102K could drag HYPE further down in the short term. However, with strong historical demand and buyer dominance evident in the 90-day spot CVD data, any price reset is expected to be shallow and temporary.