Hyperliquid is becoming the focal point for cryptocurrency investors, not only due to its outstanding performance but also because of the strong acceptance from major "whales" in the industry.
The native token of this platform, HYPE, is also witnessing a surge of interest – especially after the recent spectacular price increase. Since the beginning of April, HYPE has been continuously climbing, reaching a new all-time high of over $44 on Wednesday – equivalent to an increase of more than 365% compared to the low established at the beginning of this year.
However, the bullish momentum seems to be slowing down as buying strength gradually weakens. This is reflected in the negative divergence signal between the price and the RSI indicator – which is often an early warning sign of a potential deep correction.
Price action of HYPE | Source: TradingViewHowever, institutional investors and whales seem to have no intention of withdrawing yet. The latest data shows that they continue to accumulate HYPE, contributing to the current upward momentum. The MFI (Money Flow Index) also confirms this trend as the inflow of money has increased significantly over the past 5 days.
Is the market sentiment gradually turning negative?
The HYPE price continues to maintain impressive strength, but the RSI index is showing signs of weakening – reflecting a gradual decline in growth momentum. This could be an early signal for a correction in the second half of June.
On-chain data is also starting to show that selling pressure is increasing. Notably, the volume of liquidations of Long positions on HYPE surged to 2.11 million USD during Friday's trading session – more than double the amount of Short liquidations, which was just under 900 thousand USD on the same day.
! hype-athHYPE liquidation volume | Source: CoinglassThis trend is even more pronounced when observing the data of the past 7 days: liquidated Long orders increased sharply, while Short orders fell deeply. This development reflects a significant change in market sentiment.
At the same time, the open interest (OI) has also just set a new peak, reaching a threshold of 1.90 billion USD in the last 24 hours. This indicates that significant capital is seeking liquidation opportunities to take profits.
In addition, the volume of derivative trading on June 14 surged to 3.3 billion USD – the highest level ever recorded in a single day, further reinforcing the hypothesis that the market is entering a phase of high volatility.
The HYPE derivative volume | Source: CoinglassThe question now is: will the aforementioned signals continue to spark demand for HYPE, or simply indicate the extreme sensitivity of this token to large-scale liquidations? The answer may lie in the very factors that have driven a strong wave of interest in Hyperliquid over the past two months.
Does the performance of Hyperliquid accurately reflect the value of HYPE?
Not only attracting attention by setting a new price peak last week, the Hyperliquid ecosystem also recorded a series of impressive records across many important metrics.
Specifically, the liquidity of stablecoins on this platform has surged strongly, reaching 3.88 billion USD on Thursday – although it later experienced a slight adjustment. At the same time, the total value locked (TVL) on Hyperliquid's layer 1 network also rose to a record high of 1.795 billion USD in the past 24 hours, indicating strong and sustainable growth momentum of the project.
The core factor driving this upward momentum comes from the increasing acceptance of Hyperliquid's DEX platform by the community. A clear testament to this is the impressive recovery in trading volume on the DEX: from a low of just 50.9 million USD on April 5th, this figure has skyrocketed to a new peak of over 735 million USD on Friday.
The DEX volume of Hyperliquid | Source: DeFiLlamaThe explosive heat of Hyperliquid this year shows that the layer 1 network is effectively harnessing the influx of capital into the entire ecosystem – and that value is gradually spreading, permeating into the HYPE price in a clear manner.
What has driven the strong increase of HYPE?
In addition to the demand from large organizations as previously analyzed, HYPE also possesses high applicability when used for payments, project management, providing liquidity, and staking to generate passive income for holders.
These fundamental factors will play a key role in shaping the price trend of HYPE in the coming weeks. If indicators such as the total value locked (TVL) and the trading volume on decentralized exchanges (DEX) continue to maintain their growth momentum, it will strengthen investor confidence and help mitigate the risk of price correction.
On the contrary, in a scenario where these indicators decline sharply, HYPE may face a wave of profit-taking and significant selling pressure, leading to the risk of a deep correction in the short term.
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
HYPE holders face a challenge: Will they stand firm or falter after the historic price peak?
Hyperliquid is becoming the focal point for cryptocurrency investors, not only due to its outstanding performance but also because of the strong acceptance from major "whales" in the industry.
The native token of this platform, HYPE, is also witnessing a surge of interest – especially after the recent spectacular price increase. Since the beginning of April, HYPE has been continuously climbing, reaching a new all-time high of over $44 on Wednesday – equivalent to an increase of more than 365% compared to the low established at the beginning of this year.
However, the bullish momentum seems to be slowing down as buying strength gradually weakens. This is reflected in the negative divergence signal between the price and the RSI indicator – which is often an early warning sign of a potential deep correction.
Is the market sentiment gradually turning negative?
The HYPE price continues to maintain impressive strength, but the RSI index is showing signs of weakening – reflecting a gradual decline in growth momentum. This could be an early signal for a correction in the second half of June.
On-chain data is also starting to show that selling pressure is increasing. Notably, the volume of liquidations of Long positions on HYPE surged to 2.11 million USD during Friday's trading session – more than double the amount of Short liquidations, which was just under 900 thousand USD on the same day.
! hype-athHYPE liquidation volume | Source: CoinglassThis trend is even more pronounced when observing the data of the past 7 days: liquidated Long orders increased sharply, while Short orders fell deeply. This development reflects a significant change in market sentiment.
At the same time, the open interest (OI) has also just set a new peak, reaching a threshold of 1.90 billion USD in the last 24 hours. This indicates that significant capital is seeking liquidation opportunities to take profits.
In addition, the volume of derivative trading on June 14 surged to 3.3 billion USD – the highest level ever recorded in a single day, further reinforcing the hypothesis that the market is entering a phase of high volatility.
Does the performance of Hyperliquid accurately reflect the value of HYPE?
Not only attracting attention by setting a new price peak last week, the Hyperliquid ecosystem also recorded a series of impressive records across many important metrics.
Specifically, the liquidity of stablecoins on this platform has surged strongly, reaching 3.88 billion USD on Thursday – although it later experienced a slight adjustment. At the same time, the total value locked (TVL) on Hyperliquid's layer 1 network also rose to a record high of 1.795 billion USD in the past 24 hours, indicating strong and sustainable growth momentum of the project.
The core factor driving this upward momentum comes from the increasing acceptance of Hyperliquid's DEX platform by the community. A clear testament to this is the impressive recovery in trading volume on the DEX: from a low of just 50.9 million USD on April 5th, this figure has skyrocketed to a new peak of over 735 million USD on Friday.
What has driven the strong increase of HYPE?
In addition to the demand from large organizations as previously analyzed, HYPE also possesses high applicability when used for payments, project management, providing liquidity, and staking to generate passive income for holders.
These fundamental factors will play a key role in shaping the price trend of HYPE in the coming weeks. If indicators such as the total value locked (TVL) and the trading volume on decentralized exchanges (DEX) continue to maintain their growth momentum, it will strengthen investor confidence and help mitigate the risk of price correction.
On the contrary, in a scenario where these indicators decline sharply, HYPE may face a wave of profit-taking and significant selling pressure, leading to the risk of a deep correction in the short term.
SN_Nour