- Hyperliquid (HYPE) surged 300% since April 7, breaking its all-time high at $39.39 and showing strong bullish momentum supported by record on-chain activity.
- While further gains toward $45 or higher remain possible, technical indicators suggest the rally may be nearing its final phase before a potential correction.
Hyperliquid (HYPE) has been on an extraordinary run, smashing its previous all-time highs and drawing intense attention from crypto traders. Since April 7, the HYPE token surged by an impressive 300%, reaching a fresh peak of $39.39 on May 26. This parabolic rally has left many wondering how much further the price can climb before a correction sets in.
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Hyperliquid Meteoric Rise
The HYPE token reversed a downtrend on April 7, breaking out of a descending parallel channel that had kept prices suppressed for weeks. The decisive breakout came on May 21, when HYPE closed above the critical $27.50 resistance level. This set the stage for a rapid ascent, with the token surging over 50% within a week.
Supporting this price action has been robust on-chain activity. Open interest and 24-hour fees have hit record highs, highlighting growing market participation and trader confidence in Hyperliquid. Such strong fundamentals underpin the token’s recent performance, making it one of the top gainers in the crypto space.
Technical Indicators Signal Overheated Rally
Despite the bullish momentum, technical indicators hint that the rally might be nearing an overheated state. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are both in overbought territory. However, they have yet to show bearish divergences, which typically precede a price reversal.
Chart analysis reveals that Hyperliquid is currently in the fifth wave of a classic Elliott Wave pattern—a final extension wave that often marks the peak of a bullish cycle. This suggests that while further gains are possible, the rally’s strong parabolic nature is likely close to its limit.
What’s Next for HYPE?
Wave count projections place the next potential target near $44.65. If buying pressure remains strong, an extended rally could even push HYPE towards the 1.61 Fibonacci extension level, around $56.70. Still, these targets come with a caveat: the rally may soon exhaust itself, leading to a corrective phase.
Traders should prepare for potential volatility, as sharp pullbacks often follow such intense upward moves. The key will be monitoring whether Hyperliquid can sustain its momentum or if profit-taking triggers a cooling-off period.
Hyperliquid’s breakout and parabolic surge make it one of the most exciting cryptos to watch in 2025. The combination of strong on-chain activity, breaking resistance, and technical momentum offers compelling bullish signals. However, the technical wave analysis and overbought indicators advise caution, suggesting that the rally may be entering its last leg before a correction.
For investors and traders, keeping a close eye on price action around the $40-$45 range will be crucial in anticipating what comes next for HYPE.
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