After a strong rally that pushed Hyperliquid’s HYPE token to a new all-time high, signs are emerging that a temporary cooldown could be underway. Despite this short-term pullback, on-chain indicators and structural signals continue to point toward a longer-term bullish trend.

In recent weeks, HYPE has captured attention across the crypto market with a sharp upward move, climbing over 48% within a month. Whale activity and growing open interest have supported the rally, while demand pressure has remained steady even amid macro volatility in the broader market.

Yet, some short-term cracks in momentum are beginning to show.

HYPE sets new high but signals suggest a cooldown

The HYPE token recently reached a new high near $44, surpassing its January peak of $27.20 by a wide margin. This breakout was fueled by strong buyer dominance, as reflected in 90-day cumulative volume delta (CVD) data, which showed consistent spot buying pressure.

However, since topping out, the RSI (Relative Strength Index) on the 3-day chart has started to show lower highs while the price has continued to post new peaks. This divergence is often seen as an early warning sign that momentum may be fading, even as prices rise.

At the same time, trading volume has tapered off. A drop in the 20-day moving average of volume during a rally can signal that buyer interest may be slowing down. When combined with the RSI divergence, it strengthens the case for a pullback or consolidation phase.

Support levels in focus as price cools off

Zooming into the 4-hour timeframe, the HYPE chart shows that a short-term correction may already be underway. The market structure remains bullish, with price action still forming higher highs and higher lows. However, momentum has cooled, and the RSI is now hovering closer to neutral territory.

The OBV (On-Balance Volume) has not shown any dramatic drop yet, which means that sellers haven’t taken full control. But if Bitcoin continues its retracement from the $111,000 range, it could weigh on altcoins like HYPE in the coming days.

Fibonacci retracement levels suggest potential support zones between $38.30 and $35.00. These levels may offer buying opportunities if demand holds up and Bitcoin avoids a deeper drop below $102,000.

Macro factors and Bitcoin’s dip influence HYPE’s path

The broader market backdrop also plays a role in HYPE’s current trajectory. Bitcoin recently pulled back from the $111,000 level after failing to break higher. That rejection created a ripple effect across altcoins, prompting short-term caution even for fundamentally strong assets like Hyperliquid.

HYPE’s bullish structure, however, remains intact across higher timeframes. Even if the price revisits the mid-$30 levels, the long-term trend still shows strength, as long as major support levels hold.

Additionally, large holders of HYPE have continued accumulating, according to whale wallet tracking. This could act as a stabilizing factor during periods of volatility and create a base for the next upward move.

Consolidation before continuation?

Crypto traders are closely watching to see whether the current dip turns into a deeper retracement or simply a brief consolidation before another move upward. Historically, strong trends tend to pause, correct modestly, and then resume their upward trajectory, especially when underpinned by demand and on-chain activity.

If buyers return at key support zones, HYPE may be poised for another leg higher. However, if broader market weakness intensifies, a more extended consolidation phase could be in store.

The short-term outlook depends on a few key factors:

1. Bitcoin stability: If BTC finds support above $100,000, it could calm sentiment across the market.

2. Volume recovery: An uptick in volume could signal renewed buyer interest in HYPE.

3. Momentum divergence resolution: If RSI begins to move upward again, the correction may be over.

4. Whale behavior: Continued accumulation by large wallets may provide a price floor.

Final thoughts

Despite the pullback, HYPE remains one of the more structurally sound altcoins in the current cycle. Its ability to rally over 48% in under a month speaks to strong market conviction. The recent correction is more likely a healthy pause than the start of a reversal.

As long as the token stays above its key support levels in the $35–$38 range, and macro conditions do not deteriorate further, HYPE could soon attempt another breakout.

For now, traders are best advised to monitor lower timeframes for signs of a shift in momentum—such as bullish divergence on the RSI or a spike in volume. These clues will help determine if HYPE’s next move is up or if it needs more time to consolidate.