HYPE Bleeds 27% as Fee Revenue Surges – Bulls Guard $30 Support Line
Market Pulse
- HYPE slumps 27.5% this week despite generating highest blockchain fees in 24 hours
- RSI plunges to oversold territory at 39.14 – first time since token launch
- Bulls defending $30.58 support as liquidation cascade threats loom
Hyperliquid’s HYPE token has taken a devastating hit this week, tumbling 27.54% from $42.19 to current levels at $30.58 as profit-taking overwhelmed the record-breaking fee generation on the platform. The paradox is striking – while Hyperliquid leads all chains in 24-hour fees, signaling massive platform adoption and revenue generation, the token price has entered freefall territory with nearly 40% erased from December highs. The main question for traders is: can the $30 psychological level hold as support while the platform’s fundamentals remain strong, or will liquidation pressures trigger another leg down?
| Metric | Value |
|---|---|
| Asset | HYPERLIQUID (HYPE) |
| Current Price | $30.58 |
| Weekly Performance | -4.41% |
| Monthly Performance | -27.54% |
| RSI (Relative Strength Index) | 39.1 |
| ADX (Average Directional Index) | 23.6 |
| MACD (MACD Level) | -2.03 |
| CCI (Commodity Channel Index, 20-period) | -105.86 |
Momentum Exhaustion Signals Capitulation Phase at 39.14
RSI sits at 39.14 on the daily timeframe, marking the first oversold reading since HYPE began trading – a sharp reversal from the overbought extremes above 70 that characterized the token’s initial surge. This momentum exhaustion comes despite Hyperliquid’s operational success in fee generation, suggesting the selloff represents profit-taking rather than fundamental deterioration.
What’s revealing is how RSI behaved during the plunge – it fell steadily without any bounce attempts, indicating sellers maintained control throughout the entire move from $43.22 to current levels. For swing traders, this deeply oversold condition presents the first genuine mean reversion opportunity in HYPE’s short trading history, though catching this falling knife requires strict risk management given the velocity of the decline.
ADX at 23.56 Confirms Trend Weakness Despite Sharp Selloff
Looking at trend strength indicators, ADX reads 23.56, which seems counterintuitive given HYPE’s violent 27% weekly drop. This moderate ADX reading indicates the selloff, while painful, lacks the extreme directional conviction typically seen in liquidation cascades – basically, it’s more orderly profit-taking than panic selling.
The relatively contained ADX suggests market makers are absorbing supply without complete breakdown in market structure. Therefore, range traders might find opportunity as the trend exhausts itself, while momentum traders should wait for ADX to climb above 30 before committing to directional bets in either direction.
20-Day EMA at $36.94 Now Acts as Resistance After Support Break
Price action through the EMA ribbons tells a clear story of deteriorating structure. HYPE trades well below the entire moving average stack – the 10-day ($36.94), 20-day ($37.79), and critically, the newly established 50-day EMA around $35.29. Each of these levels that previously supported the token’s ascent now caps any relief bounce attempts.
Most significant is the compression between the 10-day and 20-day EMAs, both hovering in the $36-38 zone. This creates a thick resistance band roughly 20% above current price – any recovery attempt must first reclaim this zone convincingly before bulls can target the psychological $40 level. The fact that HYPE generates industry-leading fees while trading below all key averages highlights the disconnect between fundamentals and technicals.
Liquidation Line at $30.58 Becomes Critical Support Test
Resistance stacks heavy in the $36-38 zone where the moving average confluence meets the bodies of last week’s red candles. Above that, the $40 psychological level and December’s peak at $43.22 represent major hurdles for any recovery attempt. The news about potential liquidation lines adds urgency to these resistance levels – shorts piled in during the decline will defend their positions aggressively.
On the support side, the current $30.58 level gains critical importance as both a psychological round number and the reported liquidation trigger zone. This level has already been tested once today with buyers emerging, but the real test comes if broader crypto markets weaken. Below $30.58, there’s an air pocket down to the mid-$20s where HYPE initially consolidated after launch.
The market structure reveals an interesting divergence – while HYPE bleeds on the price chart, Hyperliquid platform leads all blockchains in fee generation over the past 24 hours. This fundamental/technical disconnect won’t persist indefinitely; either the token catches up to platform success or operational metrics deteriorate to match price action.
Bulls Need Decisive Reclaim Above $36 Moving Average Cluster
Bulls require a high-volume close above the $36-38 moving average resistance zone to shift momentum – this would trap late shorts who piled in during the oversold plunge. The platform’s fee leadership provides fundamental ammunition for such a move if crypto market conditions stabilize.
The bearish scenario triggers if $30.58 support cracks on volume, potentially unleashing the liquidation cascade mentioned in recent analysis. Such a break would target the $25-27 zone where HYPE initially based, representing another 15-20% downside from current levels. Given the token’s limited price history, support levels below $30 remain largely theoretical.
Given the oversold RSI, moderate ADX, and strong platform fundamentals via fee generation, the most probable near-term path is consolidation between $30-36 while the market digests this week’s sharp decline. The disconnect between Hyperliquid’s operational success and HYPE’s price action suggests patient accumulation might reward those willing to fade the negative sentiment.
