Hyperliquid's native token HYPE is trading around $31 after a rapid rally stalled near $32.73. The price advanced from the $27 region before sellers capped the move, pushing the market into a consolidation phase. Despite cooling momentum, the broader uptrend remains intact as key Fibonacci levels come into focus.
Key Fibonacci Support Holds
HYPE is currently reacting near $30.67, which aligns with the 0.618 Fibonacci retracement of the recent impulse leg. This zone now acts as immediate support for the short-term structure. As long as buyers defend this area, the uptrend remains technically sound. A firm hold above $30.60 keeps the path open toward $31.85 and the $32 intraday barrier. Moreover, a decisive break above $32.73 would confirm renewed upside strength, likely extending gains toward $34.50 and $36.00.
Downside Risks Remain
If HYPE fails to hold above $30.60, pressure will shift toward $29.20 (the 0.5 retracement), with deeper support at $28.38 and $27.35 (prior consolidation zones). A loss of $29.20 would weaken near-term sentiment and return the market to range-bound conditions. Momentum indicators still reflect a trending environment — the Average Directional Index (ADX) reads near 35, signaling strong directional conditions. However, the recent pullback shows cooling after sharp expansion.
Open Interest Reset Sharply
Derivatives data reveal a significant reduction in leverage from prior highs. Open interest peaked near $2.6 billion during the rally before crashing to about $1.3 billion in a mid-cycle flush. By early March, positioning stabilized near $1.31 billion. This reset suggests lower speculative excess, which could support steadier price action if demand returns.
Spot market flows show persistent outflows from mid-summer through autumn, with the largest capitulation in mid-October. Brief inflows followed rebounds, yet overall conviction remained moderate. Early February saw selective accumulation, but net flows stayed slightly negative into March. Notably, prominent trader Arthur Hayes maintains a long-term bullish outlook, projecting a target of $150, although he trimmed part of his position for risk management.
HYPE now trades within a decisive zone where price compression and reduced leverage set the stage for the next structural move. Traders should watch the $30.60 support and $32.73 resistance closely — a breakout above either level will likely dictate the short-term trend.