After an explosive 83% rally over the past 30 days, Hyperliquid (HYPE) is entering a cooling phase, retreating from its all-time high of \$39.58 reached on May 26. At press time, the token is trading at \$34.25, marking a 5% decline over the past 24 hours. Still, analysts view the pullback as a potential consolidation period, rather than a trend reversal.
Trading Volume Remains Strong Despite Dip
HYPE’s retracement hasn’t deterred market activity. 24-hour trading volume surged by 12% to \$325.7 million, suggesting continued interest from both retail and institutional traders. Derivatives trading also remains robust, with \$1.27 billion in daily volume, up 8.33%, according to Coinglass.
However, open interest has dipped slightly by 4.45% to \$1.29 billion, signaling that some traders may be taking profits or reducing leverage following the recent highs.
Record-Breaking Week for On-Chain Metrics
The latest correction follows a string of record-setting performance on Hyperliquid’s decentralized perpetuals platform. For the week ending May 26, Hyperliquid reported:
- \$72 billion in weekly trading volume
- \$10.1 billion in all-time high open interest
- \$3.5 billion in total value locked (TVL), surpassing platforms like Berachain (BERA)
- Nearly \$1.5 trillion in cumulative trading volume in under two years
This rapid growth has put Hyperliquid in the spotlight as a serious player in decentralized finance, especially in the derivatives space.
Whale Activity in Focus
Fueling the buzz was a high-stakes trade by pseudonymous whale James Wynn, who opened a \$1.25 billion long position on Bitcoin (BTC) using 40x leverage between May 21 and 22. The position briefly yielded \$40 million in unrealized gains, but a market-wide downturn triggered by political news erased those gains, resulting in losses of up to \$17.5 million by May 25.
This kind of visible high-leverage activity has become part of Hyperliquid’s appeal and its risk narrative.
Technical Analysis: Healthy Pullback or Start of a Slide?
From a technical standpoint, HYPE appears to be undergoing a healthy consolidation:
- The price is now testing the middle Bollinger Band near \$33, a level aligned with short-term moving averages.
- The Relative Strength Index (RSI) sits at 65.5, still in bullish territory but cooling from recent overbought conditions.
- MACD (Moving Average Convergence Divergence) remains positive, suggesting upward momentum persists.
- All key moving averages (10-day, 100-day, SMA) are still flashing buy signals.
However, the Stochastic RSI is showing signs of cooling off, hinting at potential exhaustion in the short term.
If the price holds above the 20-day EMA at \$30.4, bulls may consider this a buy-the-dip opportunity. A drop below could test support near \$28, while a break above \$36 could trigger a second leg upward toward \$40+.
Final Thoughts
While Hyperliquid’s recent pullback may rattle short-term momentum traders, the fundamentals and on-chain metrics suggest the broader uptrend remains intact. As one of the fastest-growing decentralized derivatives platforms without VC backing and with over \$1 billion in daily trades Hyperliquid continues to attract attention for its scalability and raw market traction.
For now, all eyes are on whether HYPE can hold above \$30 and reclaim momentum for another breakout attempt.
