- Hyperliquid (HYPE) moves above key resistance near $37.40, showing a short-term trend shift, but price now struggles around $39 as momentum begins to slow after the recent surge.
- A $1.5M exploit and a $93.7M whale token unlock add pressure, raising concerns about liquidity, risk management, and potential sell-side impact in the near term.
- Technical structure remains constructive above $37 support, yet failure to clear $40–$42 could lead to consolidation or a pullback toward $35 levels.
Hyperliquid’s price moved above a key resistance level, which hints at a shift in short-term trend. The breakout comes after persistent tight price movement. Traders are now tracking if the move can extend further.
HYPE is trading at $39.18, at the time of writing. The price went down by 0.57% over the past 24 hours. Trading activity has also cooled, with volume down 2.33% to $339.44 million. Even with the pause, the token continues to hold its recent structure. Market participants see the $40 level as the next key hurdle. A clear change above this range could make way for another upward leg.
Hyperliquid ($HYPE) Slips Amid Security Issues
The price movement comes after a volatile period for the protocol. Hyperliquid saw both technical progress and operational challenges during the week. One of the most notable events was a $1.5 million exploit targeting its market-making pool. The attacker used a low-liquidity memecoin to manipulate prices. This triggered forced liquidations and pushed the system to absorb losses via its internal mechanisms. The incident highlighted ongoing risks in automated DeFi systems, especially when dealing with thinly traded assets.
At the same time, large token movements added pressure to market sentiment. A wallet linked to a trader known as “Techno Revenant” unstaked around 2.4 million HYPE tokens. The holdings were valued at nearly $93.7 million. The tokens had completed a six-month lock-up period. There is no confirmation on whether they will be sold or held. Still, such a large release increases the chance of added supply entering the market.
Traders are closely watching on-chain activity for more clues. From a technical stance, there are signs that the latest correction may be coming to an end. HYPE did close above its 20-day exponential moving average near $37.28. This is a level traders tend to track as a signal of short-term strength. Holding above it suggests buying interest is coming back. In the near term, if this support is kept, the overall trend may stabilize.
The breakout above a descending channel has also drawn attention. This pattern had defined price action for weeks, with lower highs and lower lows. The recent move above $37.40 changed that structure. It implies a possible reversal in trend. Analysts note that the crypto is now forming higher lows. This pattern often points to gradual accumulation. It can also attract short-term traders looking for continuation.
HYPE is now testing the $39 region. This area has emerged as immediate resistance. At the same time, the earlier resistance near $37.40 has turned into support. Such shifts are often seen as confirmation of a breakout.
That is a structure if the price is still above that level. The next important zone lies in the $41-$42 range. This range corresponds to the upper boundary of the previous channel. A move toward this level would lend weight to the current bullish outlook. But the market remains sensitive to short-term changes.
Indicators suggest that the token is entering a critical phase. On shorter timeframes, the trading range has widened between $34 and $42. This reflects increased volatility.
Bollinger Bands demonstrate the price approaching the upper boundary, around $39.6. That frequently indicates strong momentum but also short pauses. Analysts are now seeing support levels form around $37.3 and lower at $35. A drop below these areas may weaken the structure currently in place.
On the upside, resistance is unchanged around $40 and moves toward $42 to $44. The story is further complicated by institutional positioning. Hyperliquid Strategies Inc has been holding around 220,000 HYPE tokens since mid-March. Still, the firm has significant cash, including more than $112 million. The sum of its holdings is nearly 18.82 million HYPE, worth approximately $738 million.
