Hyperliquid is experiencing a modest cool-down following its recent prolonged rally that pushed values past the $89 mark in previous sessions. Market participants are closely watching the price action as momentum indicators suggest the recent bullish phase might be stretching thin, opening the door for potential short-term pullbacks and profit-taking activities among traders.
Institutional Demand Remains Resilient
Despite the slight price correction, institutional interest in HYPE continues to display remarkable firmness, backed by substantial capital inflows crossing $12 million during the past week. Bloomberg ETF analyst James Seyffart highlighted in an X post that prominent financial institutions including Wealth High Governance, OLP Capital, UBS, Bank of Montreal, and Jane Street maintain significant exposure to the decentralized exchange token. This sustained institutional appetite coincides with discussions surrounding plans by US President Donald Trump to bring Hyperliquid operations onshore.
Sustained ETF Inflows for Five Consecutive Weeks
Data from SoSoValue indicates that HYPE-focused Exchange Traded Funds recorded $12.27 million in inflows over the past week. Although this figure shows a reduction compared to the $56.86 million registered the prior week, the continuous positive inflows mark the fifth consecutive week of institutional accumulation, underscoring underlying confidence in the asset's long-term structure.
Technical Resistance and Fibonacci Retracements
Analyzing the charts, Fibonacci retracements calculated from the swing move between $76.93 and $51.20 provide a solid cushion underneath current price action, mitigating deep downside risks during corrections. However, HYPE faces intense resistance near the 127.2% Fibonacci extension level at $85.94, where selling pressure mounts as investors opt to lock in gains rather than push for immediate highs.
Momentum Indicators Point to Short-Term Caution
Momentum metrics on the daily timeframe show the Relative Strength Index hovering near 64, staying within the bullish zone while easing away from overbought territory. Concurrently, the Moving Average Convergence Divergence indicator has slipped marginally beneath its signal line, reflecting a brief hesitation in upside momentum. A decisive breakout above the upward-sloping trendline near $89.61 could clear the path toward the 161.8% extension level at $98.95, eventually targeting the psychological $100 milestone.
