Hyperliquid’s native token (HYPE) rose 2.9% to $42.43 in volatile trading as the asset struggles to break and hold the key $44 resistance level amid conflicting technical and on-chain signals.
"The structure depends heavily on whether the altcoin will hold above the support at $41," analysts at Invezz said in a recent note. "If HYPE drops below $41, the bullish breakout would be invalidated, opening the door for a pullback toward the $39–$38.92 support zone."
The move comes as fresh selling pressure from large holders, or whales, complicates the technical outlook. On-chain data tracker OnchainLens reported a whale sold 50,000 HYPE tokens for $2.07 million in USDC at an average price of $41.43. Separately, another large investor transferred 5,532 ETH, worth approximately $13 million, to the Hyperliquid platform with the intent to sell, according to market reports.
This increased supply is being met by strong fundamental demand drivers from the protocol itself. The Hyperliquid Assistance Fund, part of a program to reduce token supply, purchased 13,000 HYPE worth $500,000 on April 26. The decentralized perpetuals exchange continues to generate significant fee revenue, reporting an annualized figure of $844 million, while total value locked on the platform exceeds $4.7 billion, according to data from DefiLlama.
From a technical perspective, HYPE’s price remains above its key daily exponential moving averages, a bullish signal. However, while the Relative Strength Index (RSI) of 57 suggests room for further upside, a bearish MACD crossover on shorter timeframes points to waning momentum. The price action is now a contest between the platform’s strong performance and the weight of whale distribution. A decisive break above the $44 to $45.67 resistance zone is required to confirm the uptrend, while a loss of the $41 support level would signal a victory for sellers.
This article is for informational purposes only and does not constitute investment advice.
