Hyperliquid Cools Down After Explosive Rally: Traders Eye Key Support Levels

HYPE Price Dips 5% Amid High Trading Volume

Hold onto your hats, crypto fans! Hyperliquid (HYPE) is taking a breather after skyrocketing to the moon. The token's currently chilling at $34.25, down 5% in the last 24 hours. But don't let that fool you - this baby soared 83% over the past month, hitting a mind-blowing all-time high of $39.58 on May 26. Despite the dip, the trading floor's still buzzing, with volume cranking up to $325.7 million, a 12% jump in just one day!

Derivatives Market Keeps the Party Going

The derivatives scene ain't slowing down either. Daily volume's pumping at $1.27 billion, up 8.33%. But hold up - after that wild price peak, HYPE's open interest took a 4.45% hit, dropping to $1.29 billion. Looks like some traders are cashing in their chips or dialing back the leverage.

Hyperliquid's On-Chain Metrics Hit Record Highs

Get this - Hyperliquid's decentralized perpetuals platform just went off the charts. For the week ending May 26, they smashed the highest weekly trading volume ever at $72 billion and open interest hit an all-time high of $10.1 billion. These guys are on fire!

Platform Outshines Rivals, Nears $1.5 Trillion in Trading Volume

Hyperliquid's not just playing with the big boys - they're beating them! They've surpassed heavy hitters like Berachain (BERA) in total value locked, clocking in at $3.5 billion. And check this out - they're closing in on a whopping $1.5 trillion in cumulative trading volume, and they've only been around for less than two years. Talk about making waves!

High-Leverage Whale Activity in the Spotlight

Ever wonder what the whales are up to? Well, get a load of this - the mysterious James Wynn went all in with a $1.25 billion long position on Bitcoin (BTC) using 40x leverage between May 21-22. At first, he was swimming in unrealized gains of $40 million. But then, bam! Trump's tariff announcement sent the market into a tailspin, and Wynn's profits turned into losses ranging from $13.4 million to $17.5 million by May 25. Ouch!

Technical Analysis: HYPE in Healthy Consolidation Phase

So, what's the deal with HYPE's chart? It looks like the token's taking a well-deserved break after touching the upper Bollinger Band at $39. Right now, it's testing the middle band, hanging out around $33, which is right in line with those short-term moving averages.

RSI and MACD Show Bullish Signs Despite Cooling Rally

The relative strength index is still flexing at 65.5, showing some solid momentum even after coming down from overbought territory. And the moving average convergence divergence? Still bullish, baby, with a clear upward bias. All the big moving averages, from the 10-day to the 100-day SMAs, are screaming "buy!"

Stochastic RSI Cools, But Bulls See Buying Opportunity

Now, the Stochastic RSI's starting to chill out, hinting that the rally might be running out of steam. But here's the thing - if HYPE can stay above the 20-day EMA at around $30.4, the bulls might see this as a golden chance to jump in. Watch out, though - a drop below that could send the token crashing towards $28. On the flip side, if it breaks above $36, buckle up for another shot at $40 and beyond!