Hyperliquid Price Rebounds After Sharp Drop, but $58 Resistance Remains Key

Hyperliquid (HYPE) is attempting to regain stability after suffering one of its steepest corrections of the year. Following a powerful rally that pushed the token above $75, HYPE experienced a nearly 30% decline over the past few weeks before finding strong support near the 200-day exponential moving average (EMA) at around $50.

The successful defense of this long-term support level has sparked a recovery, with HYPE climbing back toward the $56 mark. While the rebound has improved short-term sentiment, technical indicators suggest the cryptocurrency is still navigating a corrective phase rather than confirming a full bullish reversal.

HYPE has already reclaimed the 26-day EMA and is now testing the 50-day EMA near $58. This level is particularly important because it coincides with a previous support zone that turned into resistance after the July breakdown. A decisive move above this area could strengthen bullish momentum and improve the asset's technical outlook.

Momentum indicators, however, remain mixed. The Relative Strength Index (RSI) has recovered from oversold conditions but continues to trade below the neutral 50 level, indicating that bearish pressure has eased but has not disappeared completely. At the same time, trading volume during the recent recovery has declined, suggesting buyers are returning cautiously instead of aggressively accumulating positions.

The next major technical test lies in the $58-$60 range. If HYPE successfully breaks above the 50-day EMA, attention will shift toward the 100-day EMA near $63, where sellers could once again become active. Clearing that resistance would improve the chances of a broader recovery.

On the downside, failure to hold current levels could trigger another decline toward the 200-day EMA around $50, which remains the most critical support level. Until Hyperliquid establishes higher highs and reclaims its medium-term moving averages, the broader trend is likely to remain corrective despite the recent rebound.