Hyperliquid (HYPE) Flashes Golden Cross, But Fading Momentum Raises Concerns- What’s Next?

The crypto market has been facing significant upward pressure ever since Trump announced the re-escalation of the war with Iran. Many cryptos, including Bitcoin, XRP, Solana, etc., have broken down their respective support ranges, while some, like Ethereum, display some strength. Hyperliquid price has been plunging for the past few days, and the latest pullback has dragged the levels below the pivotal support range. 

On the other hand, it is also sending mixed signals and here’s where the setup appears to be dangerous. The current trade setup does not appear to be a breakout setup but a conflict between trend and momentum. And in such phases, the market usually undertakes a sharper price action. 

Hyperliquid Trend Structure: Bullish, But Slowing

HYPE has been in a steady uptrend since February, forming a rising channel with consistently higher lows as buyers remained largely active. However, the rejection near $43 resistance shows that while buyers can push the price higher, they lack the strength to sustain the momentum. Currently, the price has dropped back into the support range around $35-$36, and a breakdown below this range could attract a deeper correction. 

The emergence of a potential golden cross suggests that the broader trend is turning bullish. Typically, this attracts trend-following capital and supports further upside. Besides, the RSI is declining, even as price attempts to hold above key levels, indicating a drop in buying pressure. This divergence may create a key conflict, which may result in a correction or consolidation before the next expansion phase. 

If HYPE price holds above $34 and momentum stablises and RSI begins to rise, it may reclaim $38 to $40, which may even extend to $43 to $45. Besides, a failure may result in a pullback close to $30, invalidating the possibility of recovery in the short-term. 

What’s Next for the HYPE Price Rally?

Currently, the HYPE price is not breaking out but is in a transitional phase where buyers are still present, keeping the trend intact. However, the conviction is fading as the momentum is weak, which may also invalidate the upcoming golden cross as well. Therefore, defending the current support range is extremely important for the Hyperliquid price, which may pave the way for a healthy recovery beyond $40.