Hyperliquid (HYPE) Cools Off After Meteoric Rise — Where Does It Go From Here?

Hyperliquid (HYPE) just took traders on a wild ride—soaring to dizzying heights before reality (and profit-taking) kicked in. Now, the question on everyone’s lips: Is this a healthy pullback or the start of a deeper correction?

The Rally That Defied Gravity

HYPE ripped through resistance levels like they were wet paper last week, fueled by a mix of perpetual swap hype and leveraged gamblers chasing the next big thing. Classic crypto.

The Pullback: Normal or Ominous?

Prices dipped 15% overnight as early bulls cashed out. Technicals suggest support at $3.20, but with BTC wobbling, nothing’s guaranteed. Watch for liquidation cascades if that level breaks.

What’s Next?

Traders are split: Degens see a buying opportunity, while skeptics whisper ’dead cat bounce.’ Meanwhile, institutional players are probably laughing into their spreadsheets—another day, another volatile altcoin eating retail’s lunch.

• Hyperliquid (HYPE) pulls back after rallying from $10 to over $18, dropping 2.97% in the past day.

• Technical indicators like BBTrend and MACD show weakening bullish momentum and a possible short-term downtrend.

• Analysts advise caution, suggesting traders wait for confirmation of a trend reversal before re-entering the market.

After an impressive rally over the past few weeks, Hyperliquid (HYPE) is displaying signs of a pullback. The latest TradingView data shows that HYPE currently trades at $17.83, after dropping 2.97% in value in the last day.

During its price uptrend, HYPE moved from about $10 to over $18. However, the coin’s market is currently experiencing a cool off, with sellers gaining more control.

Source: TradingView

Weakening Buying Pressure Hints at Possible Hyperliquid Price Decline

According to the technical indicators, the coin’s trading volume is displaying signs of weakness, even though it’s still strong at the moment.

The decline in volume suggests that the bullish momentum from the previous uptrend is starting to lose steam. While its relative strength index (RSI) at the time of writing is at 57.70, which is still within the neutral range, it’s gradually moving towards the overbought region.

This shows that there’s a drop in buying pressure, and the cryptocurrency’s price could continue to drop in the short term if selling pressure continues to rise.

In addition, the BBTrend indicator has flipped from green to red bars, suggesting that bearish momentum is starting to build. This indicator usually measures the strength and direction of an asset.

With a current value of -0.431, the BBTrend proves that a downtrend is happening, even though it could only be for a short term. It is important to note that a temporary pullback is normal after a strong price uptrend.

Such price drops usually allow an asset’s price to stabilize before starting to move in its next direction, which could be up again or down. Analysts advise traders seeking to enter the market to wait for a reversal before making any move. 

For instance, signs that the pullback is ending include the BBTrend turning green again or the RSI dropping closer to 40. However, if the sellers maintain their momentum and the price drops below its next crucial support level, the coin continues in its downward direction. The $16 price level is HYPE’s next crucial support level.

MACD Signals Fading Bullish Momentum for Hyperliquid

In addition, the MACD also confirms signs of a slowing buying momentum for Hyperliquid. While the MACD line (blue) is still above the signal line (orange) (which is usually a bullish sign), the distance between these two lines is getting smaller.

When this happens, it is a sign that an asset’s (in this case Hyperliquid) bullish momentum is gradually weakening. The MACD histogram bars have also been decreasing in size.

These suggest that factors causing the rise in the price of HYPE are starting to weaken.