Hyperliquid (HYPE) was trading around $59 after rebounding from the lower boundary of a falling wedge, with buyers attempting to regain control following a prolonged correction. The token is approaching a key resistance zone near $63, where a confirmed breakout could indicate the start of a broader recovery attempt.

Technical indicators and derivatives data also point to a developing bullish divergence. Market participants are watching whether HYPE can capitalize on weakening bearish momentum to reclaim the $63 resistance area and extend its rebound. Because the current setup includes both spot price structure and leveraged positioning, confirmation around resistance remains important before the recovery attempt can be viewed as sustained.

Hyperliquid Tests Falling Wedge Resistance

Hyperliquid price is trying to recover after defending the lower boundary of a falling wedge, a chart pattern that is often associated with a bullish reversal when it is confirmed by a breakout. Although buyers have regained some momentum, HYPE remains below an important resistance zone that may determine whether the recovery continues or stalls.

HYPE is testing the upper boundary of the falling wedge near $59. A move above this trendline would likely confirm a shift in short-term momentum.

Immediate resistance is located between $62.8 and $63.2, where a previous support area has turned into resistance. A successful reclaim of this range could open the way for a move toward $66, followed by the psychological $70 level.

The Relative Strength Index (RSI) has formed a bullish divergence, with price making lower lows while the RSI forms higher lows. This setup suggests selling pressure is weakening and that buyers may be preparing for a reversal.

Despite the rebound attempt, HYPE continues to trade below the 20-period moving average and the upper Bollinger Band. That indicates buyers still need to clear several technical barriers before a sustained uptrend can be confirmed.

If HYPE fails to break above wedge resistance, the token could retest the lower trendline near $57. A breakdown below that support would invalidate the bullish setup and expose the token to additional downside.

Short Liquidations Could Influence HYPE’s Next Move

Hyperliquid’s liquidation map indicates that the next major liquidity pool is above the current price, supporting the bullish technical structure. Coinglass data shows a growing concentration of short liquidations between $59.5 and $61.5, while cumulative short liquidation leverage continues to build toward the $64–65 region.

This structure indicates that a breakout above the falling wedge could trigger forced short covering and accelerate upward momentum. Liquidation clusters matter because leveraged short positions can be forced to close when price moves against them, adding buy-side pressure in a rising market.

At the same time, long liquidation liquidity below the current price has declined considerably, suggesting that much of the downside leverage was already cleared during HYPE’s recent correction. With fewer leveraged long positions left to liquidate below the market, the incentive for sellers to push prices lower appears to be weakening.

The liquidation profile is aligned with the technical setup, as HYPE attempts to reclaim the upper boundary of the falling wedge. A decisive move above $59.5–60 could force short sellers to unwind positions, increasing buying pressure and improving the probability of a rally toward the key $63 resistance zone.

Declining Open Interest Points to a Leverage Reset

Hyperliquid’s Open Interest has continued to move lower over the past several sessions, falling from nearly $2 billion to around $1.7 billion as HYPE consolidated near the $59 level. The decline suggests traders have been closing leveraged positions rather than adding fresh exposure during the recent correction.

The reduction in Open Interest indicates that speculative excess is gradually leaving the market, lowering the risk of another sharp long liquidation cascade. At the same time, HYPE has managed to defend its key support zone, suggesting the correction has been driven more by leverage unwinding than by aggressive spot selling.

Open Interest is closely watched in this type of setup because rising price with falling leverage can indicate a cleaner reset, while renewed expansion in leveraged positions near resistance may increase volatility around breakout attempts.

Can Hyperliquid (HYPE) Reach $70?

Hyperliquid price is approaching a decisive point as it tests the upper boundary of its falling wedge. A bullish RSI divergence, overhead short liquidations, and declining Open Interest suggest bearish momentum is fading, improving the chances of a recovery if resistance is reclaimed.

However, $63 remains the key hurdle. A breakout above that level could trigger renewed buying momentum and create a path toward $66 and the psychological $70 mark. Conversely, failure to reclaim resistance could send HYPE back toward the $57–58 support zone, delaying any sustained recovery.