Hyperliquid retests $40 again – Should buyers be cautious of another pullback?

According to Onchain Lens on X, a Hyperliquid [HYPE] whale sold HYPE holdings worth $2.07 million The whale held 100K HYPE, but likely opted to sell following HYPE’s short-term rejection from $43.1.

Though this rejection briefly forced HYPE below $40, the altcoin still has a bullish long-term bias. The Hyperliquid DEX has remained a popular exchange, even though its daily trading volume and new user stats have slowed down since the market downturn in October 2025.

AMBCrypto recently reported that the hike in perp volume on the platform over the past two months indicated more capital flows to the exchange, and more trading activity would impact prices.

Moreover, HYPE has maintained its uptrend for the better part of 2026 so far. Its weekly structure has been bullish and unbroken. Will the current run extend higher, or has HYPE’s momentum begun to slow down?

Anatomy of HYPE’s retracement and the possible bullish weakness

At the time of writing, the 1-day structure appeared to be bullish. The most recent structure break in favor of the buyers came on Monday, 13 April, when HYPE broke the previous swing high at $43.76.

However, this break did not see an extended uptrend. Instead, the DEX altcoin stopped at $45.77, just 4.58% above the previous high, before retracing to $38.89.

Therefore, the structure was bullish, but the momentum slowed down near the top. The $40-level was tested as support for the second time in a week.

Traders’ call to action – Remain cautious

The weak momentum past $43.7 earlier in April, combined with the recent rejection from $43, indicated the potential for a deeper pullback. The golden pocket between $36.87-$38.77 remains the ideal buying zone, based on the 1-day price structure.

Traders can wait for a move to $36.87 before entering the market. This bullish setup would be invalidated by a price drop below $34.45, which would introduce a bearish structure shift.

Final Summary

• The uptick in buy-side pressure from leveraged traders on the DEX platform has boosted trading volume and HYPE token value.
• The uptrend is intact, but there is reason to anticipate a deeper retracement towards $36 before the next leg higher.