Hyperliquid Hits Record High, Then Faces Massive Sell-off... "10% Plunge After 3x Surge"

▲ Hyperliquid (Hyperliquid, HYPE), cryptocurrency decline/AI-generated image

Hyperliquid (Hyperliquid, HYPE) plunged by nearly 10% immediately after hitting an all-time high, facing a sell-off, and market attention is now focused on whether the $52 support level will break.

According to crypto media outlet Cryptopotato on May 28 (local time), Hyperliquid fell by nearly 10% that day. Hyperliquid entered a retracement phase after a sell-off emerged immediately after setting a new all-time high just under $65. Cryptopotato presented $52 as the key support level and $63 as the key resistance level.

This sharp decline is largely characterized by profit-taking after short-term overheating. Hyperliquid rapidly tripled since January, making it one of the strongest performing assets of 2026. Given the significant surge, this correction was considered an expected trend, with analysis suggesting that the continuation of the uptrend hinges on defending the $52 level.

Short-term and long-term views diverge. Cryptopotato suggested that Hyperliquid might enter a correction phase in the short to medium term, but diagnosed that a bullish trend is still maintained in higher time frames. The strong fundamentals of Hyperliquid within the cryptocurrency market and the recent creation of additional buying demand by Hyperliquid ETFs, which was unprecedented in the past, were cited as reasons.

Technical overheating signals were already clear. The 3-day Relative Strength Index (RSI) surpassed 77 points, a level not seen since May 2025. An RSI above 70 points is classified as an overbought zone, and Cryptopotato pointed out that emotional buying could lead to a price peak signal. This retracement is interpreted as the overheating warning translating into actual selling pressure.

The $52 support level is the critical turning point for this correction. If this price level holds, the uptrend remains intact, and the possibility of retesting a new all-time high remains. Conversely, if $52 breaks, the short-term correction could deepen further. Hyperliquid has entered a phase where it must confirm selling pressure before recovering the $63 resistance level.

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