HYPE falls sharply after reaching ATH: Has the frenzy ended?

Hyperliquid (HYPE) is showing initial signs of a trend reversal after a sharp fall of 12.63% in just two days, although it recently set a new all-time high (ATH). Key indicators such as DMI and RSI indicate weakening momentum and increasing bearish pressure.

ADX is rising while -DI crosses above +DI and RSI has fallen below 40 – both indicate that sellers are gaining control. Although the EMA structure technically remains bullish, a death cross is looming that could initiate a deeper correction if support levels are not maintained.

Bear HYPE intensifies as DMI turns bearish

The directional movement index (DMI) of Hyperliquid shows that the average directional index (ADX) has increased to 21.41 from a level of 17.93 just one day prior.

This increasing trend indicates that the momentum is beginning to strengthen, although the current value generally still reflects a relatively weak trend.

ADX measures the strength of a trend ( but not its direction ), with values above 25 typically indicating a strong trend and values below 20 indicating low momentum or consolidation.

DMI of HYPE | Source: TradingViewHowever, the directional indicators support a bearish picture for HYPE. +DI has fallen sharply from 31.61 to 14.54 just two days ago, while -DI has risen to 28 from 12.97 during the same period.

This combination and the widening gap indicate that selling pressure is increasing while buying momentum is weakening.

If this setup continues, it may indicate a developing bearish trend for HYPE, with sellers increasingly controlling price action.

RSI Hyperliquid falls below 40 as momentum weakens

The relative strength index (RSI) of Hyperliquid has fallen to 39.52, significantly lower than the 56.26 from two days ago.

This bearish condition reflects a shift in momentum, with recent selling pressure outweighing buying interest.

When the RSI approaches the oversold threshold, it indicates that the bullish sentiment is weakening and may shift into bearish territory.

RSI of HYPE | Source: TradingViewRSI is a momentum indicator that measures the speed and change of recent price movements. It ranges from 0 to 100.

Indicators above 70 often signal an overbought condition that typically leads to a price adjustment, while indicators below 30 indicate an oversold condition and potential recovery.

RSI at 39.52 places Hyperliquid in a neutral to weak zone, indicating that momentum is falling but has not yet reached levels typically prompting a reversal. If RSI continues to fall, it may signal further bearish risk unless there is a change in momentum.

HYPE falls back after ATH as key support levels appear

Hyperliquid recently reached a new ATH but then fell sharply by 12.63% in the past two days. This decline occurred despite the EMA lines maintaining a bullish structure.

However, a potential death cross may be forming as the short-term EMA lines cross below the long-term EMA lines.

! HYPE HYPE Price Analysis | Source: TradingViewIf this bearover is confirmed, HYPE could test the key support level at $37.32 and break below that level could cause it to continue falling towards $32.62.

On the contrary, if the momentum of change and the bullish structure is maintained, Hyperliquid could recover and retest the resistance levels at $43.98 and $45.77.

A strong move at those levels could signal a new bullish trend and pave the way for a price increase to $50, once again setting a new ATH.

Đình Đình