Hyperliquid (HYPE) Faces Critical Price Test as Momentum Weakens Despite Strong Revenue

Hyperliquid (HYPE) is at a crossroads, with its price action teetering at critical levels despite impressive revenue growth over the past month.

The decentralized trading platform has collected $42.53 million in fees over the last 30 days, underlining its strong fundamentals. However, technical indicators suggest that bullish momentum may be fading.

The Relative Strength Index (RSI) — a key measure of market momentum — has dropped sharply to 42, down from 60.93 just a day earlier. This cooling of the RSI reflects a shift in market sentiment, moving HYPE from a previously overbought status into a more neutral, slightly bearish zone. Traditionally, an RSI reading above 70 indicates an overbought market, while below 30 points to oversold conditions. With the current reading hovering around 42, Hyperliquid’s token appears vulnerable to further pressure if momentum does not recover.

Adding to the concern, the BBTrend indicator — which tracks the strength of price trends based on Bollinger Band behavior — has plummeted to 2.63 from 12.68 within five days. This sharp decline signals a rapid weakening of the strong uptrend HYPE previously enjoyed. Typically, high BBTrend values suggest robust price movement, while lower readings point to potential consolidation or sideways trading.

HYPE's price recently failed to break through the critical $19.26 resistance level on two separate occasions. The inability to sustain upward momentum has left the asset hovering near a key decision point. If bearish sentiment continues, HYPE could slide toward immediate support at $16.82. A breakdown below this level could expose deeper downside targets at $14.66, $12.42, and even $9.32.

Conversely, a resurgence in buying pressure could see HYPE once again challenge the $19.26 mark. A successful breakout would likely open the path toward $21, with the potential to rally up to $25.87 — a level not seen since February 21.

At present, Hyperliquid stands at a pivotal moment: whether it can reignite bullish momentum or succumb to deeper correction pressures will likely define its next major move.