Hyperliquid Tests Range High—Failed Auction Zone Could Trigger Reversal

Hyperliquid’s price action flirts with a critical resistance level—classic ’failed auction’ behavior that often precedes sharp pullbacks. Traders eyeing the order book see thinning liquidity above current levels, suggesting institutional players might be setting traps for overeager retail bulls.

Key indicators to watch: Spot volume divergence and perpetual funding rates flipping negative would confirm the reversal thesis. Meanwhile, perpetual swap open interest keeps climbing—because what’s a crypto cycle without excessive leverage?

Pro tip: If this rejection holds, the 20-day moving average becomes the next logical support. But in today’s algo-driven markets, ’logic’ lasts until the next whale decides to rug the futures crowd.

Key technical points

• Price action rallied from a failed auction at the range low
• Volume has not supported the continuation above resistance
• Range high acts as a technical sell zone if rejection confirms

The rally from the lows was impulsive, and the reclaim of the range low marked a shift in buyer aggression. The failed auction setup served as a major reversal cue, when the market broke below a key level only to reclaim it and run higher. This behavior is often associated with seller exhaustion and can kick off new bullish sequences. That was evident here as the price climbed with strength, targeting the range high.

But what makes the current level so critical is the lack of volume follow-through as price tapped into the range high resistance. While price structure has remained bullish, the declining volume suggests the market may not have enough strength to push beyond this zone. In previous bullish continuations, volume typically confirms the move. However, this time it’s absent.

This hesitation at the range high increases the probability of a potential pullback, especially if price starts to fall back within the range. That would mimic the earlier failed auction, except this time at the top. The market might be preparing for a range-bound continuation or even a reversal if confirmation occurs. Currently, there are no signs of strong bullish follow-through above this resistance.

What to expect in the coming price action

If HYPE fails to break above the range high with strong volume, a rejection from this level becomes the more probable scenario. Traders should watch for confirmation of a failed breakout, such as a daily close back within the range, which would increase the probability of a rotation back toward mid-range or the previous range low.

However, a clean break and hold above the range high with strong volume would invalidate this setup and open up a path toward continuation higher.