Hyperliquid’s native token, HYPE, is facing increased selling pressure after retreating more than 13% from its all-time high. Following one of the strongest rallies in the crypto market this month, traders are now closely watching whether a newly formed double-top pattern could trigger a larger correction.
The recent decline comes as profit-taking accelerates, macroeconomic uncertainty weighs on risk assets, and investors reassess the impact of a major token unlock that recently increased circulating supply.
HYPE Pulls Back After Explosive Rally
According to market data, HYPE dropped to an intraday low near $65.70 on June 19, extending losses from its record high of $76.70 reached just three days earlier.
The rally had been fueled by strong derivatives activity, aggressive short liquidations, and growing interest in tokenized assets within the Hyperliquid ecosystem. Enthusiasm surrounding tokenized SpaceX exposure also contributed to increased trading activity and investor demand.
However, after a rapid surge, many traders have begun locking in profits, creating downward pressure on price.
Federal Reserve Outlook Adds Market Pressure
The broader crypto market has also struggled following comments from Federal Reserve Chair Kevin Warsh.
During his first policy meeting as Fed Chair, Warsh reinforced a higher-for-longer interest rate outlook, signaling that inflation concerns remain a priority. As a result, investors shifted toward a more cautious stance, reducing exposure to speculative assets such as cryptocurrencies.
A stronger U.S. dollar and reduced risk appetite have affected many altcoins, and HYPE has not been immune to the broader market pullback.
Token Unlock Increases Supply Concerns
Additional pressure came from Hyperliquid’s recent token vesting event.
Earlier this month, approximately 9.9 million HYPE tokens entered circulation, representing nearly $700 million worth of supply at prevailing market prices.
While Hyperliquid’s buyback mechanism helped absorb a significant portion of that supply during the rally, investors are becoming more sensitive to any slowdown in network activity or trading volume.
Although trading activity remains strong compared to historical levels, perpetual futures volume has declined from the peak reached during HYPE’s run toward $77.
Double-Top Pattern Signals Potential Weakness
From a technical perspective, traders are paying close attention to a developing double-top pattern on the four-hour chart.
A double top is a classic bearish reversal formation that often appears near local market highs. In HYPE’s case, the pattern formed around the $76.70 to $77 resistance zone.
Since then, the token has fallen below key Fibonacci retracement levels and is now testing support near the $65 region.
If sellers push price decisively below the neckline around $64.80, the bearish pattern could be confirmed, increasing the likelihood of additional downside.
Potential support levels include:
- $62.00
- $58.40
- Upper $50 range
These levels align with projected targets derived from the double-top structure.
Momentum Indicators Turn Bearish
Several technical indicators suggest that bearish momentum is building.
The MACD indicator has crossed lower and remains below its signal line, indicating weakening buying pressure. Meanwhile, the Chaikin Money Flow (CMF) has moved into negative territory, suggesting capital is flowing out of the asset.
These signals often indicate that sellers are gaining control, at least in the short term.
However, the longer-term picture remains more balanced. HYPE continues to trade above major daily support around $56.50, meaning the broader uptrend has not been fully invalidated.
Key Resistance Zone Between $70 and $72
On the upside, traders are closely monitoring the $70 to $72 area.
Data from liquidation heatmaps shows a significant concentration of leveraged positions within this range. If buyers manage to push HYPE back above $70, a wave of short liquidations could create additional upward momentum.
Reclaiming this zone would weaken the current bearish setup and potentially reopen the path toward previous highs near $77.
Until then, the market remains vulnerable to continued selling pressure.
Bitcoin’s Weakness Could Influence HYPE
Like many high-growth crypto assets, HYPE remains heavily influenced by Bitcoin’s direction.
Several analysts believe Bitcoin may still need to test lower levels before establishing a stronger recovery. If Bitcoin continues to weaken, risk assets such as HYPE could face additional pressure.
Market participants are therefore watching both Bitcoin support levels and Hyperliquid’s technical structure closely.
What Traders Should Watch Next
The coming sessions could be critical for determining HYPE’s short-term direction.
Bullish Scenario
- Price reclaims $70–$72 resistance
- Trading volume increases
- Buyback activity strengthens
- Crypto market sentiment improves
Bearish Scenario
- Support at $64.80 breaks
- Long liquidations accelerate
- Price moves toward $62 and $58 support zones
- Broader crypto weakness continues
Final Thoughts
Hyperliquid’s impressive rally has paused as traders take profits and market conditions become more challenging. The emergence of a double-top pattern has raised concerns about a deeper correction, particularly if key support levels fail to hold.
While the long-term fundamentals of the Hyperliquid ecosystem remain intact, short-term price action suggests caution. For now, traders are focused on whether HYPE can stabilize above the mid-$60 range or if the current pullback extends toward lower support levels.
The battle between buyers and sellers around the $65 support zone will likely determine the token’s next major move.
