HYPE is cooling after hitting $64.72 ATH, RSI pulled back from 78 to 62 while the trend stays bullish and Fibonacci levels mark where bulls could step back in.
Key Takeaways:
HYPE down 8.5% from ATH of $64.72, currently around $56.49.
RSI dropped from 78 at peak to 62 – still above 50, trend remains bullish.
Price made higher highs but RSI made lower highs – divergence visible at the top.
SMA50 converging with 0.382 Fib between $45-$48 – strongest confluence support.
There are visible signs of cooling and exhaustion from the bulls after this bullish run for HYPE. RSI on the daily chart from TradingView reached overbought levels at the top, climbing to 78. Now we can also see cooling there, with RSI currently at 62. However, it still remains above 50, which means the trend is still bullish and HYPE has entered a healthy correction phase. The overall trend remains bullish, but in the short term we are seeing cooling.
Another thing supporting the short-term cooling thesis is that at the top, price made higher highs while RSI made lower highs, a divergence that was visible before the correction began.
It is important to watch Fibonacci levels right now because price is trading far above the SMAs, which means the move has become very extended. When price runs this far ahead of its moving averages, the SMAs lose some of their short-term relevance as immediate support references, they are simply too far below current price to act as a floor in the near term. As a result, many traders will likely pay closer attention to Fibonacci levels as they search for support zones and potential entry areas.
Three scenarios based on Fibonacci
The first support based on Fibonacci levels is the 0.236. If price manages to hold above this level and confirms with a green candle, it would mean the bulls are taking back control, remaining optimistic and aggressive, and it becomes very likely that we see continuation to the upside.
If it fails to hold, then we move toward the next 0.382 level along with a possible RSI drop below 60, which could indicate a healthier correction. This is also a strong support zone since the 50 SMA is sitting around those levels. Between $48 and $45 there could be very strong support. Even if price drops there it still might not necessarily mean a bearish trend reversal, on the contrary, it could become a good area for bulls to regain control and start accumulating again.
If price falls below the 0.5 Fibonacci level, the 100 SMA becomes the next important level where a strong bullish reaction could also appear along with a possible reversal back to the upside.
The most bullish scenario would be if price pulls back slightly but manages to stay above the 0.236 Fib level with only a weak correction. Another bullish case would be a drop toward the next Fib level where the 50 SMA also comes into play, creating what could be a very healthy correction. Either way the overall trend for HYPE remains bullish, the short-term cooling is a natural part of the move, not a reversal of it.
