Hyperliquid Hits New High, Then Sell-Off Bomb... "10% Plunge After 3x Surge"

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

As soon as Hyperliquid (Hyperliquid, HYPE) hit an all-time high, it was hit by selling pressure, plummeting by nearly 10%, and market attention is now focused on whether the $52 support level will break.

According to crypto media outlet Cryptopotato on May 28 (local time), Hyperliquid fell by nearly 10% that day. Immediately after setting a new all-time high just under $65, selling pressure entered, and Hyperliquid entered a retracement phase. Cryptopotato presented the key support level at $52 and the key resistance level at $63.

This sharp decline is strongly characterized by profit-taking after short-term overheating. Hyperliquid surged threefold rapidly since January, making it one of the strongest performing assets in 2026. Given the significant increase, this correction was considered a predictable trend, and analysis suggests that maintaining the upward trend depends on defending the $52 level.

Short-term and long-term views diverge. Cryptopotato suggested that Hyperliquid could enter a correction phase in the short to medium term but diagnosed that a bullish trend still persists in higher time frames. The strong fundamentals of Hyperliquid within the cryptocurrency market and the recent Hyperliquid ETF creating unprecedented additional buying demand were cited as reasons.

Technical overheating signals were already clear. The 3-day Relative Strength Index (RSI) surpassed 77 points, a level not seen since May 2025. An RSI above 70 points is classified as an overbought zone, and Cryptopotato pointed out that emotional buying could lead to price peak signals. This retracement is interpreted as the overheating warning translating into actual selling pressure.

The $52 support level is the key turning point for this correction. If this price level holds, the uptrend remains intact, and the possibility of re-challenging a new all-time high remains. Conversely, if $52 breaks, the short-term correction could deepen further. Hyperliquid has entered a phase where it needs to confirm selling pressure before recovering the $63 resistance level.

*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.*