Hyperliquid Rushes to All-Time High, Chart Overheats...Fear of Profit-Taking Spreads Ahead of $70

▲ Hyperliquid (HYPE), Cryptocurrency Decline/AI Generated Image

Hyperliquid (HYPE) has garnered market attention by continuing a rally that is virtually a near-vertical ascent after breaking above $60, but as overheating signals become apparent, the risk of a sharp correction has also increased.

According to U.Today, a cryptocurrency specialized media outlet, on May 26 (local time), Hyperliquid is considered one of the strongest performing assets in the cryptocurrency market. However, after surpassing the $60 mark, the angle of ascent became excessively steep, indicating that the chart has entered a short-term overheating zone.

Hyperliquid surged from the mid-$40s to an all-time high in just a few trading sessions. In this process, it quickly broke through key resistance levels without significant corrections, and the price trend significantly exceeded major moving averages. The 20-day moving average is also rapidly rising below the current trend, reflecting both strong momentum and unstable market conditions simultaneously.

Recent candles have started showing long upper wicks near the highs, and the Relative Strength Index (RSI) has already entered deep into the overbought zone during the breakout. U.Today pointed out that as late-entering momentum buying increases, initial profit-taking may occur. In periods where follow-up buying accompanies a sharp rise, even small selling pressure can lead to significant volatility.

However, it is not easy for the bear camp to immediately take control. There is almost no immediate overhead resistance remaining, and as long as Hyperliquid maintains above the previous breakout range of $55 to $57, the overall structure remains bullish. The market views Hyperliquid as a high-growth exchange ecosystem rather than a mere speculative altcoin, which is why aggressive dip-buying is also flowing in.

If the upward momentum continues, the next target could be around the psychological resistance level of $70. However, analysis suggests that if the current accelerating trend breaks, a correction down to the late $40s, where the 20-day moving average is located, would not be unusual. While Hyperliquid maintains a bullish trend, the burden of overheating has increased after its vertical ascent, making the defense of the $55 to $57 breakout zone a key variable for the short-term trend.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*