HYPE Achieves New All-Time High; But Will the Momentum Hold?

Hyperliquid (HYPE) has put up an impressive rally lately. On the monthly time frame, the coin has surged by over 110% showing increasing investor confidence. This has pushed HYPE to a new all-time high on May 26

The surge is majorly fueled by on-chain activity which has surged lately. In fact, Hyperliquid announced that the coin’s open interest and gas fees reached new heights. Increase in on-chain activity highlights huge participation by Hyperliquid investors. Social momentum is also on the roof raising hopes for a continuation of the current rally

HYPE’s Price Hits All-Time High

Hyperliquid was on a two-week long consolidation starting from May 7. However, on May 22, Hyperliquid broke out of a key resistance level around $27.50. Turning this level into support saw the price of HYPE surge towards new heights. The momentum saw Hyperliquid surge to a new all-time high (ATH) at $39.21 on May 26 as per the 4-hour chart on trading view

Source: TradingViewAs confirmed by Hyperliquid, the rally to a new ATH has been fueled by increased on-chain activity. A post by Hyperliquid on X earlier today shows that besides price, the network reached new all-time highs in three on-chain metrics

In particular, Hyperliquid’s Open Interest (OI) reached a whopping $10.1 billion. This level marks a new ATH for Hyperliquid’s OI. The ecosystem has also recorded $5.6 million in trading fees over the last 24 hours – yet another all-time high.

Hyperliquid also achieved new ATH with $3.5 Billion in USDC stablecoin total volume locked (TVL). This surge in USDC stablecoin TVL on the network highlights attraction for the network in the DeFi sector

Hyperliquid’s Social Momentum Explodes Alongside Price

Besides a surge in price Hyperliquid is seeing a surge in social momentum. Data by Social metric analysis platform LunarCrush shows that HYPE is exploding in terms of engagements and mentions across social media platforms

Source: LunarCrushSocial engagements around HYPE have surged by 24.31 million over the last month. It currently sits at 25.61 million. On the other hand, Hyperliquid has been mentioned approximately 21.01K times across social media platforms over the last month. This shows an increase of 17.34K times in the same period. This shows that Hyperliquid is gaining investors attention

HYPE’s Technical Indicators to Potential Momentum Slow Down

Despite the recent rally in the price of HYPE, technical indicators are painting a cautious outlook. As per TradingView, Hyperliquid’s relative strength index (RSI) currently sits at 67.21 dropping from 70.57 on the 4-hour chart. This explains the recent drop in the price of HYPE sitting at $38.18 as at press time

If HYPE’s RSI continues to dip, the price could follow through. But if it sustains above 60, bullish momentum could continue. The RSI is still way above the neutral level at 50 which would potentially mean a consolidation

Source: TradingViewOn the other hand, the MACD shows an incoming bearish crossover. The MACD line is at 2.14 while the signal line sits at 2.03 with convergence clearly forming. If a bearish crossover occurs, then HYPE could drop before pumping again. The histogram bars are also fading further adding to the incoming bearish crossover

Overall, Hyperliquid’s structure remains bullish. But the technical indicators point to a dip before another attempt to continue the upward price movement