The launch of the first-ever HYPE ETF marked a major milestone for the Hyperliquid ecosystem, attracting market attention and trading activity. Despite the strong attention generated by the first-ever HYPE ETF launch, the Hyperliquid price is beginning to show signs of weakness. The bearish pressure is gradually increasing across the market as the price has failed to sustain above a crucial resistance level.
On the other hand, the momentum indicators also point towards a fading momentum. Does this point towards a short-term correction for the HYPE price rally?
First-Ever HYPE ETF Records Strong Debut Volume
The Hyperliquid ecosystem recently witnessed a major milestone after 21Shares launched the first-ever HYPE ETF, trading under the ticker THYP. According to reports, the ETF recorded nearly $1.8 million in trading volume on its debut day, signaling strong early market participation for a token-linked crypto ETF.
ETF analyst James Seyffart reportedly described the launch as “very solid,” noting that THYP performed above the average range typically seen during ETF debuts. The strong initial activity suggests growing institutional and traditional market interest in Hyperliquid and the broader decentralized trading sector.
The launch has also fueled speculation that additional HYPE-related investment products could follow, with Seyffart suggesting Bitwise may potentially launch a HYPE ETF next. If the momentum around these products continues to strengthen, Hyperliquid could gain broader exposure across traditional financial markets, potentially increasing liquidity and long-term investor participation around the HYPE token.
HYPE Price Faces Rising Selling Pressure as Momentum Weakens
The HYPE price is showing signs of growing weakness after failing to sustain itself above the crucial $42 resistance zone. The latest rejection from the upper supply region has triggered increasing selling pressure, pushing the price back toward the short-term support range near $39 to $40. A major bearish signal comes from the lack of strong buying activity near the lower support zones.
Despite the recent pullback, the chart does not show aggressive bullish absorption or high-volume recovery candles near the demand areas, indicating buyers are currently hesitant to step in. Besides, the RSI has broken below its ascending trendline support, confirming weakening momentum after maintaining a bullish structure for several weeks. This breakdown suggests the previous uptrend momentum is fading as sellers gradually regain control of the market.
Key Levels to Watch
- Immediate support: $38.80
- Major support zone: $35 to $36
- Immediate resistance: $42
- Major resistance zone: $46 to $47.50
If HYPE fails to reclaim the $42 region quickly, the token may continue correcting toward the lower support zones near $38 and potentially $35.
Can the HYPE Price Hold the Crucial $40 Support?
Overall, the Hyperliquid price remains at a crucial stage after the strong ETF-driven rally. While the launch of the first-ever HYPE ETF has significantly improved market visibility and institutional exposure, the recent price action suggests traders are becoming cautious near the higher resistance zones.
If buyers manage to defend the support near $39 and reclaim the $42 region, HYPE could regain momentum and attempt a fresh rally toward the $46 to $47 range. However, continued selling pressure may trigger a deeper correction toward the lower support zones around $35 before the market attempts another recovery phase.
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