Hyperliquid (HYPE) has experienced an impressive rally of 326% since early April, reaching an all-time high of $39.93 on May 26. However, recent price action suggests that momentum may be starting to fade, with the $30-$35 range becoming a key support level for bullish traders.
### Key Highlights
– HYPE surged by 326% to hit a peak of $39.93 before retracing to $34.74.
– Open interest surpassed $10.1 billion, indicating significant leverage participation.
– Total Value Locked (TVL) increased from $268.9 million in early April to over $500 million by May 29.
– While overall momentum remains positive, indicators such as RSI and MACD are signaling potential exhaustion around the $35.50 resistance level.
### Why HYPE Hit ATH — And Why It’s Cooling Now
According to TradingView News, the surge in Hyperliquid’s price to $39.93 was primarily driven by institutional activity and growing engagement on the platform. With a weekly volume reaching $78.67 billion and a record $17.73 billion on May 21, Hyperliquid has solidified its position as a top DeFi platform for perpetual trading. The platform’s success can also be attributed to high-profile traders like James Wynn, whose billion-dollar positions brought attention and pushed open interest above $10.1 billion.
The recent surge in on-chain activity reflects a broader trend of traders favoring decentralized platforms that offer deep liquidity, transparent execution, and non-custodial control over assets. However, indicators like RSI and MACD are now suggesting a potential cooling off period, indicating that consolidation may be on the horizon unless bulls can reclaim key resistance levels.
### Hyperliquid Surpasses SUI in Market Cap
Between May 25-26, HYPE’s market cap peaked at $13.04 billion, surpassing SUI Coin’s $12.27 billion market cap. The rally was supported by over $460 million in daily trading volume, propelling HYPE into the top 12 crypto assets by market cap. As of May 29, HYPE is trading at $34.74 with a market cap of $11.46 billion, still ahead of SUI’s $12.03 billion, but showing signs of cooling momentum.
### HYPE/USD Ichimoku Cloud Analysis: Bulls Hold the Line — For Now
The daily Ichimoku Cloud analysis shows a bullish structure, with the price currently above the Kumo. However, the Tenkan-sen ($33.0) is under pressure, with the Kijun-sen ($31.3) below. A break below the 20 EMA ($30.41) could shift the short-term momentum, with additional support levels at the 100 EMA ($27.38) and 50 EMA ($25.08) indicating potential vulnerabilities in the bullish trend.
### Momentum Indicators: Cooling, But Not Reversing
– RSI (14): While still bullish at 66.94, the RSI has dropped from 73.30 and is no longer in overbought territory.
– MACD: Although still above the signal line, the MACD histogram has started to fade, signaling a potential slowdown in momentum.
– BBTrend: Flattening near 25.15 from 38.863, indicating a cooling of breakout momentum.
– BBP (Bulls Bears Power): Reading at 3.038 down from 13.972 during the all-time high, suggesting diminishing buy pressure.
While momentum indicators remain positive, there are signs of exhaustion that could lead to a short-term sentiment shift if the price breaks below $30.41.
### HYPE TVL Hits 2-Month High, Reinforcing Fundamentals
Data from DeFiLlama shows that HYPE’s Total Value Locked (TVL) has risen from $268.9 million on April 1 to over $500 million by May 29. This increase in TVL indicates continued long-term investor confidence in the platform’s fundamentals.
### Protocol Strength: Revenue & Fee Dominance Back the Rally
Over the past year, Hyperliquid has generated $773.2 million in revenue with a market cap of $11.4 billion, outperforming competitors like Raydium and Aerodrome. Despite a relatively high MC/Revenue ratio of 14.8x, the platform’s growth justifies the premium. Additionally, in the last 24 hours, Hyperliquid has led all blockchains in fee generation, with $3.1 million in protocol fees, according to Artemis, highlighting strong usage and a sustainable growth model.
### HYPE Price Levels to Watch
Support levels: $33.00 (Tenkan-sen), $30.41 (20 EMA), $27.38 (100 EMA)
Resistance levels: $35.50 (minor ceiling), $39.93 (ATH), $42.00 (target)
### HYPE Price Prediction: Can Bulls Reclaim $39.93?
Despite recent cooling in momentum, Hyperliquid remains in a strong uptrend supported by high open interest and robust trading activity. The recent pullback is seen as a healthy correction within the broader parabolic structure. Traders should monitor volume confirmation, RSI trends, and MACD signals to validate directional momentum.
### Short-Term Forecast (May 29 – June 5)
– Possible short-term pullbacks to $30.41-$31.30
– Holding above $30 would maintain the current bullish trajectory
– A breakout above $35.50 could propel HYPE towards $39.93
### Mid-Term Outlook (June 5 – June 14)
– A break above $39.93 with volume could lead to resistance at $42.00
– Continued strength above $42 may target $46-$48
– The bullish structure remains intact as long as $30 support holds, with a failure below this level potentially leading to a deeper correction towards $27.38
In conclusion, while Hyperliquid’s recent price action suggests a cooling off period, the platform’s strong fundamentals and growing market cap indicate potential for further upside. Traders should remain vigilant and monitor key support and resistance levels to navigate the changing market dynamics.