Hyperliquid has retreated more than 13% from its record high after a wave of profit-taking hit HYPE, while traders assess whether a newly formed double-top pattern could trigger a deeper correction.
Summary
- HYPE has dropped more than 12% from its $76.70 all-time high as profit-taking accelerates.
- A double-top pattern on the 4-hour chart puts key support levels near $65 and $62 in focus.
- Liquidation clusters between $70 and $72 could fuel volatility as traders battle for direction.
According to data from crypto.news, Hyperliquid (HYPE) price fell to an intraday low near $65.7 on June 19, extending losses from its June 16 all-time high of $76.70.
The pullback followed one of the strongest rallies in crypto this month, fueled by heavy derivatives activity, a short squeeze, and enthusiasm surrounding tokenized SpaceX exposure on the Hyperliquid ecosystem.
The decline has unfolded alongside a risk-off move across digital assets after Federal Reserve Chair Kevin Warsh reinforced a hawkish policy stance during his first meeting at the helm of the U.S. central bank. Higher-for-longer rate expectations strengthened the dollar and pressured speculative assets, prompting traders to reduce exposure across altcoins.
Additional pressure came from Hyperliquid’s recent token unlock. Earlier this month, roughly 9.9 million HYPE tokens entered circulation as part of a scheduled vesting event worth about $700 million at prevailing prices. Although Hyperliquid’s fee-funded buyback mechanism helped absorb much of that supply during the rally, the market has become more sensitive to any slowdown in trading activity.
Network activity remains elevated by historical standards, but perpetual trading volume has eased from the peak levels recorded during HYPE’s surge toward $77. With fewer buyback-driven purchases entering the market, short-term traders have become more willing to lock in gains after the token’s rapid ascent.
Double-top pattern puts key support levels in focus
The four-hour chart shows HYPE carving out a clear double top near the $76.70-$77 region, a pattern that often appears near local market peaks. HYPE has already broken below the 0.618 Fibonacci retracement level around $67.7 and is testing support between $64.8 and $65.
A decisive break beneath the $64.8 neckline area would strengthen the bearish setup and increase the probability of a move toward the next Fibonacci support near $62, followed by the $58.4 region. The measured target derived from the double-top structure also aligns with a potential decline toward the upper-$50 range.
Momentum indicators have weakened. On the four-hour chart, the MACD has crossed lower and remains below its signal line, while Chaikin Money Flow has slipped into negative territory at approximately -0.06, suggesting capital has been leaving the asset during the recent selloff.
The daily chart presents a mixed picture. HYPE continues to trade above major support near $56.5, but price remains below the daily Supertrend resistance at roughly $74.3. Bulls would need to reclaim the $70-$72 zone to invalidate the immediate bearish structure and reopen the path toward the recent highs.
Liquidation clusters create battleground between $70 and $72
CoinGlass liquidation heatmap data shows a dense concentration of leveraged positions between $69.5 and $72. Strong liquidation bands are clustered around $70 and $71.8, creating a magnet zone if buyers regain control.
Meanwhile, sizeable liquidity pockets have formed below the market around $65 and $64. A breakdown into those levels could trigger another round of long liquidations and accelerate downside volatility.
According to analyst Lennaert Snyder, Bitcoin recently swept liquidity around $62,300 and may seek lower levels before establishing a durable bottom. While Snyder’s comments focused on Bitcoin, continued weakness in the market leader could add pressure across high-beta assets such as HYPE.
“$BTC swept 62.3K liquidity and hit our target,” Snyder wrote, adding that he would prefer to see fresh lows below $59,000 before considering a more durable reversal.
A recovery in crypto sentiment, renewed derivatives activity, and a move back above $70 would improve HYPE’s outlook. Until then, traders remain focused on whether the double-top breakdown extends toward the mid-$50 support zone or stabilizes before a larger trend reversal develops.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
