Hyperliquid (HYPE) Displays Signs of a Pullback

After an impressive rally over the past few weeks, Hyperliquid (HYPE) is displaying signs of a pullback.

Hyperliquid (HYPE) price is displaying signs of a pullback after an impressive rally over the past few weeks, latest TradingView data shows.

HYPE is currently trading at $17.83, dropping 2.97% in value over the last day.

During its price uptrend, HYPE moved from about $10 to over $18. However, the coin’s market is currently experiencing a cool off, with sellers gaining more control.

Source: TradingView

According to the technical indicators, the coin’s trading volume is displaying signs of weakness, even though it’s still strong at the moment.

The decline in volume suggests that the bullish momentum from the previous uptrend is starting to lose steam. While its relative strength index (RSI) at the time of writing is at 57.70, which is still within the neutral range, it’s gradually moving towards the overbought region.

This shows that there’s a drop in buying pressure, and the cryptocurrency’s price could continue to drop in the short term if selling pressure continues to rise.

In addition, the BBTrend indicator has flipped from green to red bars, suggesting that bearish momentum is starting to build. This indicator usually measures the strength and direction of an asset.

With a current value of -0.431, the BBTrend proves that a downtrend is happening, although it could be for a short term. It is important to note that a temporary pullback is normal after a strong price uptrend.

Such price drops usually allow an asset’s price to stabilize before starting to move in its next direction, which could be up again or down. Analysts advise traders seeking to enter the market to wait for a reversal before making any move.

For instance, signs that the pullback is ending include the BBTrend turning green again or the RSI dropping closer to 40. However, if the sellers maintain their momentum and the price drops below its next crucial support level, the coin continues in its downward direction. The $16 price level is HYPE’s next crucial support level.

MACD Signals Fading Bullish Momentum for Hyperliquid

In addition, the MACD also confirms signs of a slowing buying momentum for Hyperliquid. While the MACD line (blue) is still above the signal line (orange) (which is usually a bullish sign), the distance between these two lines is getting smaller.

When this happens, it is a sign that an asset’s (in this case Hyperliquid) bullish momentum is gradually weakening. The MACD histogram bars have also been decreasing in size.

These suggest that factors causing the rise in the price of HYPE are starting to lose steam.