HYPE Tumbles 9% From Peak—Here’s Why the Rally Isn’t Dead Yet

Another day, another crypto correction—but don’t count the bulls out just yet. HYPE’s recent dip smells more like profit-taking than panic.

The Pullback Playbook

After flirting with all-time highs, HYPE shed 9% faster than a hedge fund dumps its ’long-term holds.’ Classic volatility? Absolutely. A trend reversal? Not so fast.

Liquidity Whispers Bullish

Order books show more buy walls than a Bitcoin maximalist’s Twitter feed. Retail might be sweating, but smart money’s still circling—proving once again that ’overbought’ is just institutional FOMO in disguise.

The Cynic’s Corner

Let’s be real: if Wall Street applied the same ’fundamentals’ to stocks that it does to crypto, we’d all be trading tulip bulbs again by Thursday.

Overheating signals invite tactical short plays

HYPE’s journey from mid-April to now has firmly stamped it as the “altcoin of the season” — and it’s easy to see why. 

Savvy investors jumped in to accumulate seriously after the price hit an all-time low of $9.28 due to post-Liberation Day macro fears.

Fast-forward 60 days, and HYPE blasted off to $37.60 with clean, steady momentum, which is key here. 

Every time HYPE hit a new local high, short sellers rushed in, betting on a pullback. But the bulls weren’t having any of it.

The breakout on the 23rd of May was especially brutal for bears, as it wiped out over $23 million in short positions.

Source: TradingView (HYPE/USDT)

Yet, AMBCrypto spotted a divergence worth noting. Unlike past bear attempts, this wave coincides with heightened market-wide volatility and an RSI stretched into overbought territory.

Classic overheating signals are flashing, hinting that investors may be positioning for a cooldown amid rising pullback anxiety.

That said, the road ahead for Hyperliquid is anything but certain. If bulls can’t absorb this pressure, the shorts might finally seize control.

Spotlight on HYPE’s resilient bulls

At press time, HYPE was making waves with a solid 5.08% intraday jump from yesterday’s $33.30 close. 

What’s fueling the move?

A 3.36% dip in Open Interest (OI) down to $1.21 billion, showing traders are actively deleveraging and taking some heat off the derivatives market.

More importantly, Futures sell pressure is being met with steady absorption. This lines up with AMBCrypto’s take: spot accumulation hasn’t vanished—it’s just quieter.

Looking ahead, the next key level sits NEAR $35.50.

According to CoinGlass, this is where nearly $20 million in leverage could be flushed if HYPE breaks upward again.

Source: CoinGlass

If demand on-chain keeps its momentum, HYPE might just be gearing up to write a fresh chapter with a new all-time high very soon.