Hyperliquid (HYPE) Price Drops 12% After All-Time High—Trend Reversal or Healthy Pullback?

After reaching record highs earlier this month, Hyperliquid (HYPE) is showing early signs of cooling off. Over the past two days, the token has dropped 12.63%, raising questions about whether this is the start of a deeper correction or a typical retracement after an explosive rally.

Technical indicators such as the Directional Movement Index (DMI) and Relative Strength Index (RSI) suggest sellers are gaining ground, and price momentum may be weakening.

Technical Breakdown: Bearish Signals Flash

Directional Movement Index (DMI)
The DMI paints a cautious picture. The Average Directional Index (ADX), which measures the strength of a trend, has risen from 17.93 to 21.41—a signal that a trend is forming. However, the direction of that trend now appears bearish.

The -DI (negative directional indicator) has surged to 28 from just 12.97 two days ago, while the +DI has dropped to 14.54 from 31.61. This shift indicates that sellers are now firmly in control.

Relative Strength Index (RSI)

The RSI has fallen below the critical 40 level, down from 56.26, currently sitting at 39.52. This puts HYPE in a neutral-to-weak momentum range. While not yet oversold, the steep decline signals growing bearish sentiment and fading bullish momentum.

If the RSI continues to fall below 30, the token could enter oversold territory—often a precursor to potential price stabilization or reversal. But for now, it reflects ongoing pressure from sellers.

Chart Structure: Key Levels to Watch

Despite bearish indicators, HYPE’s exponential moving averages (EMAs) still reflect a broadly bullish structure. That said, a potential “death cross” looms—a scenario where short-term EMAs drop below long-term ones. If confirmed, this could accelerate the downtrend.

Immediate support lies near $37.32. A breakdown below this level may see HYPE falling further toward $32.62, a region that could attract buyers if bearish pressure eases.

On the flip side, a rebound above resistance at $43.98 and $45.77 would suggest renewed strength, potentially setting the stage for another rally toward the $50 milestone.