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After a powerful 83% rally this month, Hyperliquid (HYPE) is cooling off. The token hit a record high of $39.58 on May 26, but has since pulled back. As of now, HYPE trades at $34.25, marking a 5% drop in 24 hours.

Trading Volume Remains Strong Despite Pullback

Even with the price drop, market activity is far from slowing. Daily trading volume climbed to $325.7 million, a 12% increase over the past day. Derivatives are also heating up, with $1.27 billion in daily volume, according to Coinglass — up 8.33%.

Open interest dropped slightly by 4.45% to $1.29 billion, suggesting that traders might be taking profits or reducing exposure after the recent spike.

Hyperliquid’s Ecosystem Hits Major Milestones

The broader platform performance remains impressive. In the week ending May 26, Hyperliquid’s decentralized perpetuals platform posted:

• A record $72 billion in weekly trading volume
• An all-time high $10.1 billion in open interest

It also leapfrogged major DeFi platforms like Berachain, reaching $3.5 billion in total value locked (TVL). Cumulative trading volume is nearing $1.5 trillion, all in under two years since launch.

Hyperliquid reached new all-time highs again:
+ Open interest: $10.1B
+ 24h fees: $5.6M
+ USDC TVL: $3.5B

Welcome to all new members of the ecosystem. pic.twitter.com/AoWVPRINGA

— Hyperliquid (@HyperliquidX) May 26, 2025

High-Leverage Whales and Market Volatility

Part of the recent buzz surrounds high-stakes trading. A notable example: trader James Wynn opened a $1.25 billion Bitcoin long position using 40x leverage between May 21–22.

Initially up by $40 million in unrealized gains, the position turned sour following market jitters from Trump’s tariff news. By May 25, Wynn faced losses between $13.4 million and $17.5 million.

Technical Outlook: Healthy Consolidation in Progress

From a charting perspective, HYPE is in a consolidation phase. After hitting the upper Bollinger Band near $39, it’s now testing support around $33, which aligns with its short-term moving averages.

Key indicators:

• RSI sits at 65.5, still showing strength but off overbought levels
• MACD remains bullish, pointing to continued upside potential
• Major moving averages — including the 10-day, 100-day, and SMAs — signal a strong buy

However, the Stochastic RSI is cooling, hinting that momentum might fade in the short term.

Key Levels to Watch

• Support: $30.4 (20-day EMA); break below may trigger a test of $28
• Resistance: Break above $36 could set up a run back to $40 and beyond

Bulls will be watching these levels closely, as consolidation often precedes another major move.