On May 26, Hyperliquid’s $HYPE token reached a new historic high at $39.93. However, this upward momentum didn’t last long. Shortly after breaking a new ATH, the token began to dump, losing a good chunk of its previously acquired gains.
This led $HYPE to lose over 18% of its value since its high less than three days ago. So, what does that mean? Traders are watching HYPE with uncertainty. Will $33 hold, or are we about to see another wave of selling pressure? Let’s dive into it.
Support at Previous ATH Level
Bears began to showcase signs of fatigue at the $33.00 margin — HYPE’s previous ATH zone. Despite being such an infant token, this zone is already proving to be a major price action margin, either dictating whether buyers are ready to reclaim control or if sellers will push further downward.
Daily Chart Respecting Fib
Drawing a line from the very start of the upward trend on April 7, HYPE has been following almost to a tee Fibonacci retracement levels.
Right now, the price is hovering slightly above the 0.236 Fib level ($32.46), indicating that buyers are attempting to hold support. If this level holds, we could see a bounce toward the next resistance near the ATH zone ($39.99).
However, if sellers push it further down, the next critical retracement zone is the 0.382 Fib level at $28.17, which could act as another major support.
Volume Analysis: Are Sellers Losing Grip?
The key indicator to watch here is trading volume. As the price goes sideways at the current range, the decreasing volume suggests market indecision—traders are hesitant, waiting for confirmation before taking their next move.
If volume suddenly spikes on a price rebound, it could indicate renewed buying interest, potentially signaling the start of a recovery.
Possible Trade Setups for HYPE
Bullish Reversal Setup
- Entry: If price reclaims $33 with rising volume, a bounce toward $39.99 resistance becomes viable.
- Stop-loss: Below $31.50, invalidating the reversal attempt.
- Target: First resistance at $37.00, then $39.99 ATH if momentum holds.
Bearish Continuation Setup
- Entry: If $33 fails and volume spikes on a breakdown, a short trade toward $28.17 (0.382 Fib) makes sense.
- Stop-loss: Above $35.00, in case of a fake breakdown.
- Target: First support at $32.20, then $28.17 Fib level on extended selling.
Whether HYPE recovers or extends its correction depends on trader reaction at $33. Watching volume and key levels will be crucial in determining the next move.
And as always, if you’re looking for more in-depth trade setups, market insights, and community-driven strategies, check out our Legends community.
