Hyperliquid Hits New All-Time High Amid Bullish Momentum, But Retracement Risks Loom
Hyperliquid (HYPE) surged to a new all-time high of $44 this week, driven by growing whale accumulation and increasing Open Interest—a move that market indicators had been foreshadowing for weeks.
The 90-day spot Cumulative Volume Delta (CVD) confirmed buyer dominance in the market, further reinforcing bullish sentiment. However, as Bitcoin faces a pullback, signs suggest that HYPE may be due for a reset.
Despite the short-term risks, Hyperliquid continues to maintain a bullish structure across multiple timeframes. The token’s breakout past the key $27.2 resistance from January was a strong indicator of buyer strength. Over the past month, this level was successfully retested as support, followed by an impressive 48% rally in just 24 days.
That said, warning signs are beginning to emerge. The 20-day moving average of trading volume has declined throughout this rally, indicating potential overextension. Adding to the caution is a bearish divergence on the 3-day Relative Strength Index (RSI)—while prices printed higher highs, momentum indicators formed lower highs since May 25. This classic divergence often precedes a retracement.
The 4-hour chart echoes this sentiment. While the short-term market structure remains bullish, momentum is cooling, with the RSI trending toward neutral territory. On-Balance Volume (OBV), however, shows no major signs of aggressive selling—yet.
Looking ahead, Fibonacci retracement levels highlight $38.3, $36.95, and $35 as key support zones to watch. Should Bitcoin continue its descent toward the $102,000 mark, HYPE may experience a deeper pullback. Still, given the sustained demand observed in recent months, any correction could be short-lived and offer another buying opportunity.
