Hyperliquid's HYPE token has pulled back more than 10% from its all-time high and is now testing a support zone on the daily chart where three distinct chart references converge: $87–$88.

Three Chart References Converge at $87–$88

HYPE's pullback has carried the token into the $87–$88 range, the nearest support area on the daily chart. The zone amounts to a three-way test: the 23.6% Fibonacci retracement near $86.5, the former all-time-high area, and a rising diagonal support line all intersect there. Fibonacci retracement levels are standard technical references calculated from a prior price move, and traders commonly use them to gauge how deep a pullback is relative to the preceding advance.

As previously covered by Coindoo, HYPE moved above its earlier all-time high near $88 earlier this month. That former ceiling now sits within the pullback range, where traders may watch whether the level begins to act as support.

The confluence does not make $87–$88 a precise level that must hold. HYPE could briefly trade through the range and recover, or it could remain below it for several sessions. Those outcomes would give very different readings of demand during the pullback.

A Rising Wedge Cuts Through the Same Zone

The blue trendlines on the daily chart outline a rising wedge. HYPE has continued to print higher highs and higher lows, but the trading range has narrowed as the two boundaries converge toward each other.

Rising wedges are commonly viewed as bearish formations, because momentum can weaken even as price continues climbing inside a tightening range. The pattern does not confirm a reversal on its own. It becomes more relevant if price breaks below the lower boundary and then fails to reclaim it quickly.

The wedge's lower boundary passes through the same $87–$88 range. A sustained move below it would therefore weaken both the immediate support area and the upward structure that has contained HYPE's advance.

The $79–$80 Area Sits Below Current Support

If HYPE loses the $87–$88 range and stays beneath the rising diagonal, the next chart reference sits around $79–$80. The 38.2% Fibonacci retracement lies near $80, while the rising 50-day simple moving average approaches the same zone.

Because the 50-day SMA may keep moving higher over time, the $79–$80 range is more useful as a reference than treating any single moving-average reading as a fixed support number. The 38.2% Fibonacci retracement gives the zone a steadier marker.

Should HYPE reach that area, the important question would be whether buyers can stabilize price near the 50-day average, or whether selling extends through that support toward the broader Fibonacci retracement levels below.

Momentum Has Cooled Since the Run Toward $98

The daily RSI has fallen from an earlier overbought reading above 80 toward the mid-50s, a change that shows the rapid momentum behind HYPE's recent advance has eased. The cooldown leaves HYPE without the momentum excess visible near the high. It does not settle the direction of the correction, however; price behavior around the support range remains more informative than the indicator alone.

Buybacks Are Background, Not a Price Floor

Hyperliquid's fee documentation states that protocol fees are directed to community mechanisms, including the Assistance Fund, and that HYPE acquired by the fund is burned. Burning permanently removes those tokens from circulating supply.

Recent protocol activity has been substantial. DefiLlama's latest dashboard snapshot showed Hyperliquid generating about $71.1 million in fees over the previous 30 days, including roughly $55.2 million in protocol revenue. That works out to more than $2 million in daily fees on average, indicating that the protocol's fee engine has remained active throughout the period.

If activity holds at a similar level, it could continue supporting the fee flows behind Hyperliquid's community mechanisms, including the Assistance Fund. The fee figures are a measure of protocol activity, however, not a calculation of how much HYPE will be purchased or burned over any given period.

technical support zone can still fail when market-wide risk appetite, spot selling or leveraged positioning turn against a token.

HYPE Is Testing Its Post-Breakout Structure

The current pullback has reached the range where HYPE's earlier breakout must demonstrate whether it can hold as support. A recovery from $87–$88 could keep the decline within the broader structure behind the move toward $98. Continued trading below the rising diagonal would weaken that reading and place the $79–$80 area under closer attention.

Because of the wedge, a break at the current range may carry more significance than an ordinary intraday decline.

This article is provided for informational purposes only and does not constitute financial or investment advice. Technical levels and chart patterns are interpretive tools, not guarantees of future price movement. This article first appeared on Coindoo.