The Hyperliquid (HYPE) token is currently navigating a period of both sustained bullish sentiment and emerging short-term caution, despite significant whale activity and a recent stall in price momentum. While its underlying platform, the Hyperliquid DEX, continues to attract capital flows, recent price action suggests traders should prepare for a potential deeper retracement before the next upward leg.
HYPE's Enduring Uptrend Amidst Recent Resistance
Despite a notable whale selling off $2.07 million in HYPE holdings following a short-term rejection from the $43.1 mark, the altcoin maintains a strong long-term bullish bias. The Hyperliquid DEX itself remains a popular choice, with an uptick in perpetual volume indicating continued capital influx and trading activity. This positive fundamental outlook has allowed HYPE to sustain a consistent uptrend throughout 2026, with its weekly structure remaining unbroken and bullish.
Momentum Slowdown and Key Price Action
However, the token's recent performance has introduced elements of short-term weakness. Although the 1-day structure appeared bullish, breaking past a previous swing high of $43.76 on April 13, this move failed to extend significantly, topping out at $45.77 before retracting to $38.89. This swift pullback, coupled with the $40 level being re-tested as support, signals a noticeable slowdown in momentum near the peak, prompting market analysts to advise caution.
Strategic Outlook for Traders
Given the weakening momentum and repeated rejections around the $43 price point, a deeper retracement is anticipated. Traders are encouraged to exercise prudence, with the "golden pocket" range of $36.87-$38.77 identified as an ideal buying zone based on the daily price structure. A strategic entry around $36.87 is suggested. This bullish setup, however, would be invalidated if HYPE's price drops below $34.45, indicating a shift towards a bearish market structure.
