Hyperliquid Hits 3-Month High, But Momentum Fades

Hyperliquid (HYPE) has recently reached a three-month high, driven by its dominant position in the crypto market. The platform accounts for 65% of the daily perpetuals market volume and has generated $15.58 million in fees over the past week. This surge in activity has pushed HYPE to a significant milestone, but technical indicators suggest that the rally may be losing momentum.

Momentum signals such as the Directional Movement Index (DMI) and the Relative Strength Index (RSI) indicate a cooling trend. The DMI shows mixed signals, with the ADX currently at 21.93, a slight drop from previous levels. This suggests that while a trend may be forming, it is not as strong as it was. The +DI, which measures bullish pressure, is at 25, down from a strong 30.78 the previous day. Meanwhile, the -DI, which tracks bearish pressure, has risen to 17.61. This shift suggests that bullish momentum is weakening while selling pressure is slowly rising.

The RSI has dropped to 55.15, down from 68.76 the previous day, indicating that HYPE’s recent bullish momentum is fading. While the RSI is still in a neutral zone, the reversal from near-overbought conditions may signal buyer exhaustion. If follow-through buying does not return, this could lead to a cooling-off phase or short-term consolidation. If the RSI stabilizes above 50, it may reflect a healthy reset within a broader uptrend, but further decline could open the door for a deeper pullback.

Currently, HYPE is hovering just above a key support level at $26.41. The Exponential Moving Average (EMA) structure remains bullish, with short-term averages still positioned above long-term ones, suggesting the broader trend is intact. However, if this support fails under pressure, HYPE could drop toward $23.28, with a deeper decline possibly extending to $19.55 in a strong downtrend. On the flip side, if the $26.41 support holds and buyers step in, the next key test lies at the $28.43 resistance. A successful breakout above that level would open the door for a push toward $30—territory not seen since December 2024.

In summary, while HYPE has reached a significant high, technical indicators suggest that the rally may be losing steam. The next major move for HYPE will depend on whether it breaks above resistance or slips into a deeper pullback. The key support level at $26.41 will be crucial in determining the direction of HYPE’s next move. Investors and traders should closely monitor these levels and technical indicators to make informed decisions.