The meteoric rise of Hyperliquid‘s HYPE token in September has started to lose its steam, with the price retracing from highs near $98 to $86.07. On the daily chart, the token’s price has slipped below the short-term moving average that has supported the upward trend since August, now making efforts to stabilize around this pivotal level.
Short-Term Outlook Weakens
Recently, the aforementioned short-term average has served as a critical threshold where buyers repeatedly entered during pullbacks. At the beginning of September, HYPE rebounded from the $75 region before surging to nearly $98. However, the current scenario signals a weakening in this structure. The closing of daily candlesticks below this line marks a significant shift in the short-term trend.
The deterioration in price structure has become more pronounced. Following the local peak near $98, lower highs have formed, and a single extended red candle has effectively reversed several days of gains. A break below a level that previously functioned as a floor for the rally now indicates a transition in market momentum from buyers to sellers.
HYPE has lost the short-term level that defined its rise, and unless the price reclaims this threshold, the risk of a deeper correction remains on the table.
Indicators of Momentum and Volume
The Relative Strength Index (RSI) further supports the indication of waning momentum, as it has descended to around the 50 mark from upper bands. Although this trend highlights a substantial reduction in bullish momentum, it also suggests that the market has not yet veered into an oversold territory.
August’s breakout was underpinned by high trading volume, but September has seen a gradual decline in trading activity. The recent wave of selling, however, occurred under limited trading activity. While this indicates that selling hasn’t reached panic levels, it also highlights the difficulty faced by the market in attracting new buying interest.
Critical Levels in the Broader Picture
Despite this, the broader timeframe outlook has not entirely disintegrated. Long-term moving averages maintain an upward slope, indicating continued support for the main trend. The first significant support zone on the downside lies between $81 and $82, where the merging of blue and turquoise averages renders this technical level noteworthy.
Should selling pressure intensify, the orange average around $73 and the long-term black line near $61 could be viewed as deeper support zones. On the upside, the price needs to break through the $88 to $90 range again. If this band remains out of reach, the $75 to $78 range, corresponding to September lows, may become the next area for tests.
The long-term structure doesn’t appear entirely disrupted, yet the short-term bullish pattern has waned, and a return above the $88 to $90 band is needed for the price to regain strength.
Therefore, while the main trend in HYPE isn’t considered completely over, the short-term dynamics have shifted. As long as the price stays below the levels that steered the rise, the potential for a deeper pullback toward underlying rising averages will persist.
