Hyperliquid (HYPE) falters after a 5% rebound in just one day…Can it cross $90 again?

▲ Hyperliquid (HYPE)/AI generated image ©

Hyperliquid (HYPE) rebounded by over 5% the previous day but has fallen by 2% in just one day, giving back its gains. With funds again flowing out of HYPE-related ETFs, signaling a slowdown in institutional demand, the recovery of the $90 level has emerged as a key variable determining the sustainability of the short-term rebound.

According to investment specialized media FXStreet on October 1 (local time), Hyperliquid fell by 2% during Thursday's trading session, giving back some of the over 5% rebound recorded the previous day. HYPE-related Exchange Traded Funds (ETFs) saw a net outflow of $5.03 million on Wednesday. Following two consecutive days of no fund inflows earlier this week, the occurrence of outflows indicates a weakening trend in institutional investor demand compared to the $9.25 million net inflow last week.

The same signal appeared in monthly fund flows. HYPE ETFs recorded a net outflow of $6.86 million for the entire month of September. Although funds flowed in last week, the recent shift back to outflows suggests a slowdown in institutional activity. Consequently, despite the previous day's price rebound, short-term investor sentiment is under pressure.

Technically, HYPE traded below $90 on Thursday, testing the 50-period Exponential Moving Average (EMA) of $89.60 on the 4-hour chart. However, it still remains above the 100-period EMA of $88.55 and the 200-period EMA of $84.68, indicating that an uptrend is maintained in the broader context. With the short-term rebound coinciding with weakening institutional demand, the technical direction is assessed as mixed.

Momentum indicators are also mixed. The Relative Strength Index (RSI) has moved back near the neutral line after its recent recovery, while the Moving Average Convergence Divergence (MACD) has maintained an upward trend after breaking above its signal line the previous day. If a rebound is successful at the 50-period EMA of $89.60, there is a possibility of retesting the all-time high of $98.03.

If HYPE decisively breaks through $98.03, it could challenge the psychological resistance of $100 and continue its price discovery phase. Conversely, if it fails to rebound near $89.60, the 100-period EMA at $88.55 would act as the first support level, with a further drop potentially pushing it down to the 200-period EMA at $84.68. Ultimately, with institutional demand weakened by ETF outflows, the recovery of the $90 level is analyzed as crucial for the sustainability of the short-term rebound.

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