Visible signs of cooling and exhaustion have emerged among bulls following the recent bullish run for HYPE, marking a distinct shift in market sentiment. The Relative Strength Index (RSI) previously climbed to overbought levels, peaking at 78 before the top was established. Current data indicates a cooling phase, with the RSI now settling at 62. Despite this decline, the indicator remains above the critical 50 threshold, signaling that the overarching trend retains its bullish character and HYPE has entered a healthy correction phase rather than a structural reversal. While the long-term trajectory remains positive, short-term dynamics reflect a necessary deceleration. Woofun AI notes that this divergence between price action and momentum indicators is a classic precursor to consolidation periods in extended rallies.

A critical technical observation supporting the short-term cooling thesis is the divergence observed at the peak, where price formed higher highs while the RSI simultaneously created lower highs. This bearish divergence was clearly visible prior to the onset of the current correction. Attention must now shift to Fibonacci levels, as the asset is trading significantly above its Simple Moving Averages (SMAs). When price extends this far ahead of its moving averages, the SMAs lose immediate relevance as short-term support references because they sit too far below the current valuation to act as a near-term floor. Consequently, market participants are pivoting their focus toward Fibonacci retracement levels to identify viable support zones and potential entry points.

The primary support level derived from Fibonacci analysis is the 0.236 retracement. If HYPE manages to hold above this level and confirms the bounce with a green candle, it would indicate that bulls are reclaiming control, maintaining an optimistic and aggressive stance. Such a confirmation would make a continuation to the upside highly probable. Conversely, a failure to hold this level would likely trigger a move toward the next key Fibonacci level at 0.382. Data compiled by Woofun AI shows that a drop to this zone could coincide with the RSI falling below 60, which would signal a deeper but potentially healthier correction. This 0.382 level represents a strong support zone because the 50 SMA is positioned in close proximity to these price coordinates.

The price range between $48 and $45 is identified as a region of very strong support. Even if HYPE drops to this area, it does not necessarily imply a bearish trend reversal; on the contrary, it could serve as an optimal accumulation zone for bulls to regain control. Should the price breach the 0.5 Fibonacci level, the 100 SMA becomes the next critical reference point where a strong bullish reaction could emerge, potentially facilitating a reversal back to the upside. The most bullish scenario involves a slight pullback where price stabilizes above the 0.236 Fib level, resulting in only a weak correction. Alternatively, a drop toward the 0.382 level, where the 50 SMA also provides confluence, could create a very healthy correction structure. Woofun AI analysis suggests that regardless of the specific path taken, the overall trend for HYPE remains bullish, with the current short-term cooling representing a natural component of the broader upward move rather than a fundamental trend reversal.