Hyperliquid's 25% Rally Faces Potential Reversal Amid Technical Concerns

Hyperliquid (HYPE) has experienced a significant 25% increase over the past month, outperforming major cryptocurrencies. According to NS3.AI, despite this impressive rally, technical indicators are signaling potential challenges ahead. The weakening trading volume and bearish RSI divergence, coupled with a strong inclination towards long leveraged positions, suggest that the rally's momentum might be waning. Investors should monitor key price levels, with $37 being crucial for a bullish breakout, while $28 serves as critical support. A breach of this support level could result in sharp declines.