HYPE, the native token of the Hyperliquid ecosystem, slowed down after the previous rise and was traded between $57 and $59. The intraday loss exceeded 7 percent at one point, indicating that the short-term cooling in the market had become evident. Analysts consider this period as a correction and horizontal balancing phase following a strong rise.
Breathing period after ascension
In the analyzes shared on TradingView, which highlighted a cautious outlook in the short term, it was stated that HYPE lost momentum after returning from the upper resistance zones. Accordingly, the price structure moved from the expansion phase to the correction phase and short-term weakness became more visible.
According to analysts’ assessment, after the previous strong rise in HYPE, the market structure entered the correction phase; In the short term, pressure from resistance zones comes to the fore rather than upward continuation.
However, it is also stated that the main trend in the wider time period has not completely deteriorated. The recent pullback has not invalidated the medium-term bullish structure; However, critical levels must be exceeded again for a new momentum to occur.
Falling wedge formation is observed
One of the most closely watched technical developments in the market was the falling wedge formation seen on the lower time frames. Crypto analyst Crypto With Gopal noted in his X post that HYPE has formed a classic falling wedge structure on the 15-minute chart, with lower tops converging and downside momentum weakening.
Mini glossary: A falling wedge is a technical formation in which the price moves between two narrowing downward sloping lines. It usually indicates that selling pressure is weakening, but a break of the upper line with an increase in volume is expected for confirmation.
This structure often comes to the fore when sellers begin to lose their power. However, formation of a formation alone is not considered sufficient for the technical outlook to turn positive. The market is expected to settle above the upper trend line and support this move with trading volume.
Critical support and resistance zones
In the short-term outlook, the 56 to 58 dollar band stands out as the first important support area. As long as HYPE remains above this zone, the expectation that buyers defend the lower levels can be maintained. Deeper downward interest zones are shown between $53 and $56, and in weaker scenarios, around $45.
Above, the range between 65 and 66 dollars is watched as the main resistance zone. A permanent close above this could lead to a re-strengthening in market sentiment. The upper supply zone lies between $72 and $74.70. The previous strong attack for HYPE during the year also moved the price to this region, followed by harsh selling pressure.
Mixed table in indicators
Broader technical readings based on TradingView data point to the market seeking balance rather than a clear direction. The aggregate outlook for swing indicators such as RSI, Stochastic K percent, CCI, MACD and Williams R percent remains neutral. This indicates a strong momentum, neither upward nor downward.
However, moving averages offer a more constructive picture. Despite the recent pullback, the general classification of these indicators is still close to an uptrend. At the time of writing, the HYPE price was approximately $57.73, but it decreased by 1.38 percent in the last 24 hours. The main question the market is focusing on now is whether the $56 to $58 support can be maintained and whether the $65 threshold can be crossed in a possible recovery.
