Hyperliquid's HYPE Fees Hit $42.53M, Momentum Weakens

Hyperliquid (HYPE) has recently collected $42.53 million in fees over a 30-day period, but the momentum behind this cryptocurrency appears to be weakening. The Relative Strength Index (RSI) for HYPE has dropped sharply from 60.93 to 42, indicating a loss of bullish momentum and increased caution among traders. This decline suggests that HYPE is moving from overbought conditions to a neutral or slightly oversold zone, which could signal further downside pressure if the RSI continues to fall.

In addition to the RSI, the BBTrend indicator for HYPE has also seen a significant drop, falling from 12.68 to 2.63 over the past five days. This sharp decline in the BBTrend indicator suggests a major slowdown in trend strength, potentially leading to a consolidation phase or a deeper correction. The BBTrend measures the strength of an asset's trend based on the width and expansion of its Bollinger Bands, with high values indicating strong trending conditions and low values suggesting a weak or sideways market. With HYPE’s BBTrend at 2.63, the current reading points to weak trend strength, which could mean that HYPE’s price will consolidate or move sideways unless new momentum builds.

HYPE has struggled at key resistance levels, particularly at $19.26, which it has tested twice in recent days without success. This failure to break through resistance has put pressure on short-term support zones and raised concerns about a potential deeper corrective move. If bearish momentum continues, HYPE could drop to test support at $16.82, and if selling pressure intensifies, a break below $14.66 could open the way toward deeper support levels at $12.42 and even $9.32. However, if bullish momentum returns, HYPE could mount another challenge at the $19.26 resistance. A clear breakout above that level could open the path toward $21, and if momentum stays strong, HYPE could rally to $25.87, marking its first time breaking above $25 since February 21.

Ask Aime: "Is HYPE's recent downturn due to weakening momentum?"

As HYPE navigates these crucial market junctures, traders must remain vigilant. Observing resistance levels and momentum indicators will be essential to anticipating future price movements. While warning signs are present, the potential for recovery remains, pending favorable market conditions. The current situation for HYPE is delicate, with both bullish and bearish scenarios possible depending on how the market responds in the coming days.