Hyperliquid (HYPE) surged by 326% from early April to a peak of $39.93 on May 26. Despite a positive overall trend, short-term indicators now hint at weakening momentum. The price action is currently focused on the $30–$35 range, a critical support area for bullish investors.
**Key Highlights**
– HYPE surged 326% from April to $39.93 before retracing to $34.74.
– Open interest surpassed $10.1 billion, indicating significant leveraged participation.
– Total Value Locked (TVL) climbed from $268.9 million in April to over $500 million by May 29.
– While momentum is still positive, indicators like RSI and MACD suggest exhaustion near the $35.50 barrier.
**Why HYPE Hit ATH — And Why It’s Cooling Now**
Hyperliquid’s rally to $39.93 was primarily fueled by institutional activity and rising engagement. As a top DeFi platform for perpetual trading, the weekly volume peaked at $78.67 billion (May 11–18), with a record $17.73 billion on May 21. Notable trader James Wynn’s massive positions drove open interest above $10.1 billion, as confirmed by Blocmates. The platform generated $5.6 million in daily fees, underlining strong trading demand. This surge in on-chain activity reflects a broader trend where traders prefer decentralized platforms offering liquidity, transparent execution, and asset control.
**Hyperliquid Surpasses SUI in Market Cap**
Between May 25 and 26, HYPE’s market cap peaked at $13.04 billion, surpassing SUI Coin’s $12.27 billion. 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 trades at $34.74 with a market cap of $11.46 billion, maintaining a lead over SUI’s $12.03 billion but with a cooling momentum.
**HYPE/USD Ichimoku Cloud Analysis: Bulls Hold the Line — For Now**
The daily Ichimoku Cloud displays a bullish structure, with the price above the Kumo. Key support levels include the Tenkan-sen ($33.0) and the Kijun-sen ($31.3). A breach below the 20 EMA ($30.41) could signal a shift in short-term momentum. Additional support is found at the 100 EMA ($27.38) and 50 EMA ($25.08), indicating a bullish stance but with some vulnerability.
**Momentum Indicators: Cooling, But Not Reversing**
– RSI (14): Dropped from 73.30 to 66.94, still bullish but no longer in overbought territory.
– MACD: While still above the signal line, the histogram is fading, signaling a slowdown in momentum.
– BBTrend: Flattening near 25.15 from 38.863, suggesting a cooling breakout momentum.
– BBP (Bulls Bears Power): Readings at 3.038, down from 13.972 during the ATH, indicate declining buy pressure.
Momentum remains positive but indicates signs of exhaustion. A break below $30.41 could signify a shift in short-term sentiment.
**HYPE TVL Hits 2-Month High, Reinforcing Fundamentals**
According to DeFiLlama data, TVL surged from $268.9 million on April 1 to over $500 million by May 29, demonstrating sustained long-term investor confidence.
**Protocol Strength: Revenue & Fee Dominance Back the Rally**
Over the past year, Hyperliquid generated $773.2 million in revenue with a market cap of $11.4 billion, outperforming competitors like Raydium and Aerodrome. Despite a high MC/Revenue ratio, the growth justifies the premium. In the last 24 hours, Hyperliquid led all blockchains in fee generation, with $3.1 million in protocol fees, as reported by Artemis. These metrics illustrate robust 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, Hyperliquid remains in a strong uptrend supported by high open interest and strong trading activity. The recent pullback seems healthy within the broader parabolic structure.
**Short-Term Forecast (May 29 – June 5):**
– Possible short-term pullbacks to $30.41–$31.30.
– Maintaining above $30 would uphold the current bullish trajectory.
– Breaking above $35.50 might propel HYPE toward $39.93.
**Mid-Term Outlook (June 5 – June 14):**
– If $39.93 is breached with volume, the next resistance sits at $42.00.
– Sustained strength above $42 could target $46–$48.
– The bullish structure remains intact as long as $30 holds, with failure below potentially leading to a deeper correction towards $27.38. Traders should monitor volume confirmation, RSI trends, and MACD signals for directional momentum validation.
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