Hyperliquid Retraces 21.2% from $75.51 ATH Amid Bitcoin Sell-Off

Hyperliquid (HYPE) has retraced 21.2% since hitting an all-time high of $75.51 on 02 June. The decline occurred alongside a Bitcoin sell-off that pushed BTC from around $74K to below $59K. According to recent AMBCrypto analysis, Hyperliquid's fundamentals remain strong with growing TVL, rising on-chain activity, and robust fee generation indicating user conviction in the platform.

Hyperliquid Weekly and Daily Charts Show Bullish Structure with Retracement Risk

The weekly chart displays a bullish swing structure, with key Fibonacci retracement and extension targets hit over the past six months. The inability to stay above the 23.6% extension level at $71.2 signals a potential retracement wave.

On the 1-day chart, a bullish structure remains in place, though a bearish internal shift has occurred. The analysis indicates traders can expect a pullback towards the swing low at $38.17, with potential stall points at $46.21 or $52.52—identified as key southward Fibonacci retracement levels.

The 4-hour chart shows a bearish swing structure with a bounce appearing underway. This bounce could reach $63 before resuming downward movement towards $46.

Technical Analysis Identifies Key Price Levels for Traders

The source material presents two trading approaches. The first strategy involves selling the bounce with a stop-loss set above the $65.78 high. The second approach recommends long-term investors wait for a price drop to the $38-$46 area before making buying decisions.

The analysis notes this waiting period may provide additional clarity on Bitcoin's trajectory, which could inform trading decisions. The report emphasizes that Hyperliquid maintains a strongly bullish long-term outlook due to its fundamentals and revenue generation.

FAQ

What price levels did Hyperliquid reach on 02 June? Hyperliquid hit an all-time high of $75.51 on 02 June before retracing 21.2% on the charts.

What are the key support levels identified in the technical analysis? The analysis identifies potential pullback targets at $38.17, $46.21, and $52.52 as key Fibonacci retracement levels, with the $38-$46 range highlighted as a potential buying zone for long-term investors.

What trading strategy does the analysis recommend for the current bounce? Traders can sell the bounce targeting $63 with a stop-loss above $65.78, or long-term investors can wait for a price drop to the $38-$46 area before making buying decisions.