Crypto Surge: Hyperliquid’s Sharp Rally Stalls—Will Bulls Defend Key Levels?

Crypto traders are closely monitoring Hyperliquid (HYPE) after its parabolic climb paused, setting the stage for a critical test of support that could determine short-term market direction.

Hyperliquid’s token recently reached an all-time high of $39.58 before pulling back 5% to $34.25. Despite the price dip, trading enthusiasm hasn’t waned: Volume surged 12% in the past 24 hours, hitting $325.7 million. On the derivatives front, daily volume climbed 8.33% to $1.27 billion, though open interest retreated 4.45% to $1.29 billion, reflecting some traders taking profits off the table or reducing leverage.

This movement comes as Hyperliquid’s DeFi platform, known for its decentralized perpetual contracts, posted significant on-chain milestones. Last week, it set a new high with $72 billion in trading volume and $10.1 billion in open interest, positioning itself among the leading blockchain exchanges. Hyperliquid now boasts over $3.5 billion in total value locked, closing in on giants like Berachain—and approaching a staggering $1.5 trillion in lifetime trading less than two years post-launch.

Expert Insight: Many analysts view the sustained trading activity as a bullish long-term signal for altcoins and DeFi platforms. However, increased derivatives action can often foreshadow heightened market volatility. For those just diving into decentralized trading, check out this guide on choosing the best crypto exchange and our overview on cryptocurrency trading for beginners for essential market tips.

Part of Hyperliquid’s recent momentum traces back to high-stakes leveraged trading. Notably, a pseudonymous whale, James Wynn, took a blockbuster $1.25 billion long position on Bitcoin using 40x leverage. While his trade was initially profitable, a market downturn sparked by tariff news wiped out $13.4 to $17.5 million in paper gains within days—illustrating the risks of extreme leverage even amid a bullish crypto market.

Technically, Hyperliquid is navigating a consolidation phase. After topping out at the upper Bollinger Band, the token is testing support near the middle band—roughly $33—aligning with short-term moving averages.

The relative strength index (RSI) of 65.5 signals positive momentum while cooling from overbought conditions. The MACD remains bullish, reinforcing the strengthening trend, with major moving averages like the 10-day and 100-day simple moving averages still flashing buy signals. But a cooling Stochastic RSI hints the latest rally could be running out of steam; bulls will look to defend the 20-day EMA (around $30.4) as the next critical threshold. If this level breaks, expect a potential retest of $28. On the flip side, a rally above $36 could open a new run toward $40 and beyond.

In the context of broader crypto markets, Hyperliquid’s price trajectory underscores the elevated volatility attached to rapidly expanding DeFi projects. As blockchain and trading platforms keep pushing boundaries, expect heightened swings—but also major opportunities as the space matures.

Want to stay ahead in DeFi and crypto? Read our coverage on staking in crypto and how industry regulations might shape perpetual trading’s future.