Hyperliquid double top threatens deep pullback as HYPE loses 13% on ATH

Hyperliquid has retreated more than 13% from its record high after a wave of profit-taking hit HYPE, while traders are testing whether a newly formed double-top pattern could trigger a deeper correction.

According to data from crypto.news, the price of Hyperliquid (HYPE) fell to an intraday low near $65.7 on June 19, extending losses from its June 16 all-time high of $76.70.

The pullback followed one of the strongest rallies in crypto this month, fueled by heavy derivatives activity, short squeezes, and enthusiasm surrounding SpaceX’s token exposure to the Hyperliquid ecosystem.

The decline occurred alongside a shift in digital assets after Federal Reserve Chairman Kevin Warsh reinforced a hawkish policy stance during his first meeting at the US central bank’s office. Anticipation of a long-term high strengthened the dollar and pressured speculative assets, prompting traders to reduce exposure to all altcoins.

More pressure came from the latest Hyperliquid token launch. Earlier this month, approximately 9.9 million HYPE tokens began circulating as part of a planned event worth approximately $700 million at current prices. While Hyperliquid’s cash-back mechanism helped absorb most of that supply during the session, the market is very sensitive to any slowdown in trading activity.

The activity of the network remains high by historical levels, but the constant trading volume has decreased from the high levels recorded during the HYPE boom to $77. With few return-driven purchases entering the market, short-term traders are more willing to lock in gains after the token’s rapid rise.

A double top pattern sets important support levels

The four-hour chart shows HYPE recording a clear double near the $76.70-$77 region, a pattern that often occurs near local market tops. HYPE has already broken below the 0.618 Fibonacci retracement level around $67.7 and is testing support between $64.8 and $65.

A decisive break below the $64.8 neckline area will strengthen the bearish setup and increase the chances of a move to the next Fibonacci support near $62, followed by the $58.4 region. The measured target found in the double top structure is also aligned with a possible decline to the upper $50 range.

Momentum indicators have weakened. On the four-hour chart, the MACD has crossed the bottom and remains below its signal line, while the Chaikin Money Flow has entered negative territory around -0.06, suggesting that capital has been leaving assets during the recent selloff.

The daily chart presents a mixed picture. HYPE continues to trade above the major support near $56.5, but the price remains below the daily resistance of the Supertrend at around $74.3. The bulls will need to reclaim the $70-$72 area to invalidate the immediate bearish formation and re-open the path to recent highs.

Liquidation clusters create a battleground between $70 and $72

CoinGlass heatmap data shows a dense concentration of available positions between $69.5 and $72. Strong closing bands were assembled around $70 and $71.8, creating a magnetic zone for buyers to regain control.

Meanwhile, large pockets of money have formed below the market around $65 and $64. A break from those levels could initiate another long-term closing cycle and accelerate bearish volatility.

According to analyst Lennaert Snyder, Bitcoin recently swept around $62,300 and may seek lower levels before establishing a solid bottom. While Snyder’s comments focused on Bitcoin, continued weakness in the market leader could add pressure to all high-beta assets like HYPE.

“$BTC swept 62.3K and reached our target,” Snyder wrote, adding that he would like to see a new low below $59,000 before considering a long-term reversal.

A recovery in crypto sentiment, renewed activity in derivatives, and a pullback above $70 will boost the HYPE outlook. Until then, traders remain focused on whether the double breakout extends to the mid-$50 support area or stabilizes before a major trend reversal develops.