On Thursday, perpetuals trading platform, Hyperliquid saw its HYPE token hit its latest high, climbing above $60 for the first time. The rally was extended by increasing institutional interest in the digital asset. However, technical analysis suggests that the cryptocurrency may be running out of fuel to prolong its ongoing bullish rally.
HYPE hits new ATH, but a price pullback is nigh
HYPE has shot past its previous ATH of $58.53 recorded back in September 2025. The 11th-largest cryptocurrency by reported market cap of slightly over $14.5B is performing in stark contrast to the lax price action displayed by other large-caps like Bitcoin (BTC), Ether (ETH), and Solana (SOL).
According to data from Coingecko, HYPE’s 24-hour trading volume climbed beyond $1.5B on Thursday. Data from Coinglass shows that the token’s strong rally has liquidated short positions worth $42.9M over the last 24 hours.
However, seasoned crypto analyst Ali Martinez opines that HYPE’s rally may be overextended, and that a crash to $40 is possible. Martinez highlighted two key technical indicators, the relative strength index (RSI) and the TD Sequential sell signal.
The following chart shows the token’s RSI in the above 70 territory, suggesting that the digital asset is technically overbought. Meanwhile, the TD Sequential is showing a reading of 9, meaning that the sell signal is already active.
To explain, the RSI is a momentum indicator which shows how oversold or overbought an asset might be. Any reading above 70 is considered overbought, while a number below 30 shows the asset is oversold.
Similarly, TD Sequential is a technical indicator that counts price candles to spot when a trend may be exhausted. A completed “9” signals a potential reversal or pullback.
In addition, HYPE’s Chande Momentum Oscillator is also at elevated levels, hinting that a price crash is close. The Chande Momentum Oscillator measures momentum by comparing recent gains to recent losses, helping identify overbought or oversold conditions.
HYPE continues to attract institutions
A major factor behind HYPE’s consistently strong demand is the significant institutional interest in the cryptocurrency. On Tuesday, major crypto asset management firm Bitwise called HYPE one of crypto’s most undervalued assets.
The cryptocurrency is already giving tough competition to the likes of BTC in terms of net capital inflows to its exchange-traded fund (ETF).