HYPE Just Fell 8.5% – Fibonacci Alerts Us To a Shock Turning Point!

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Hyperliquid Price Falls 8.5% – What the Fibonacci Structure Says

Key Takeaways:

  • HYPE down 8.5% from ATH of $64.72, currently around $56.49.
  • RSI dropped from 78 at peak to 62 – still above 50, trend remains bullish.
  • Price made higher highs but RSI made lower highs – divergence visible at the top.
  • SMA50 converging with 0.382 Fib between $45-$48 – strongest confluence support.

After a significant price increase for HYPE, the market is showing signs of slowing down. The Relative Strength Index (RSI), measured on a daily TradingView chart, previously reached a very high level of 78, indicating an overbought condition. Now, the RSI has dropped to 62, suggesting cooling, but it’s still above 50, which means the overall upward trend remains intact. HYPE appears to be entering a normal, healthy correction phase after the recent gains. While there’s short-term cooling, the long-term trend is still bullish.

One reason to expect a short-term price drop is that the price reached new highs, but the Relative Strength Index (RSI) actually went down – this difference, called a divergence, appeared before the price started to fall.

Currently, it’s wise to focus on Fibonacci levels. The price is significantly above its moving averages, indicating a strong and potentially overextended move. When this happens, moving averages become less useful as immediate support because they’re too far below the current price to offer much of a floor. Consequently, traders are likely to turn to Fibonacci levels to identify potential support areas and good places to enter trades.

Three scenarios based on Fibonacci

The first key support level to watch is 0.236. If the price stays above this level and is confirmed by a green candle, it suggests buyers are regaining control and a continued price increase is likely.

If the price falls below its current level, we’ll likely test the next support area around $48 to $45. A drop in the RSI below 60 would suggest a normal, healthy correction. This zone is also strengthened by the 50-day Simple Moving Average. Even if the price reaches this lower range, it doesn’t automatically signal a downward trend; instead, it could present a buying opportunity for those looking to invest, potentially allowing prices to recover.

If the price drops below the 0.5 Fibonacci retracement level, traders will be watching the 100 Simple Moving Average for potential support. A bounce from this level could signal a reversal and a return to higher prices.

As a crypto investor, I’m watching HYPE closely, and I think the best-case scenario is a small dip that bounces right off the 0.236 Fibonacci level. Even if it drops a bit further, down to the next Fibonacci level where it also hits the 50-day Simple Moving Average, that could actually be a really healthy correction. Basically, I see this short-term cooling as a normal part of an upward trend, not a sign that things are about to reverse. Overall, I’m still bullish on HYPE.

This article is for informational purposes only and shouldn’t be considered financial, investment, or trading advice. Coindoo.com doesn’t support or suggest any particular investment or cryptocurrency. Always do your own research and talk to a qualified financial advisor before investing.

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2026-05-28 12:43