HYPE Price Analysis: What’s the Current Sentiment of Hyperliquid?

Hyperliquid has been grabbing attention in the crypto world, thanks to its impressive performance and growing adoption by big players. Its native token, HYPE, is riding a wave of interest, but is the sentiment still bullish, or are bears starting to creep in? Let’s break down the latest price trends, on-chain data, and key metrics to understand where HYPE stands today.

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HYPE’s Recent Price Surge

HYPE has been on fire since early April, skyrocketing 365% from its yearly low to hit a new all-time high (ATH) just above $44 on Wednesday. This massive rally has put Hyperliquid in the spotlight, with whales and institutions jumping in to fuel the upward momentum.

Signs of Slowing Momentum

Despite the impressive gains, the bulls might be running out of steam. A bearish price-RSI divergence has emerged, hinting at a potential pullback in the second half of June. This technical signal suggests that while prices climbed, the momentum behind the rally is weakening, which could lead to a correction.

Read more: James Wynn is marketing Hypkerliquid well, says Winturminute

Is the Market Sentiment Turning Bearish?

On-chain data shows some cracks in the bullish narrative. On Friday, HYPE saw $2.11 million in long liquidations compared to just $900,000 in short liquidations, indicating stronger selling pressure. Over the past week, long liquidations spiked while short liquidations cooled off, pointing to a possible shift in sentiment toward caution.

Open Interest and Trading Volume

Open interest hit a new high of $1.90 billion in the last 24 hours, showing strong market participation. Meanwhile, derivatives trading volume soared to $3.3 billion on June 14, marking a record daily high. This surge suggests that smart money is active, but it also raises the risk of liquidations triggering sharper price swings.

Liquidity Inflows Holding Strong

Despite the bearish signals, the Money Flow Index (MFI) shows a spike in liquidity inflows over the past five days. This indicates that whales and institutions are still accumulating HYPE, which could help limit downside risks and keep the bullish sentiment alive for now.

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Hyperliquid’s Ecosystem Growth

Hyperliquid’s Layer 1 network is thriving, with total value locked (TVL) reaching $1.795 billion in the last 24 hours. Stablecoin liquidity also peaked at $3.88 billion on Thursday, though it has slightly cooled since. The Hyperliquid DEX has seen explosive growth, with trading volume jumping from a low of $50.9 million on April 5 to over $735 million on Friday. This surge in activity highlights the platform’s growing popularity.

Why the Surge in Demand?

The massive adoption of Hyperliquid’s DEX is a key driver behind HYPE’s price action. The token’s utility, used for payments, governance, liquidity provision, and staking for passive rewards, has fueled demand. As more value flows into the ecosystem, HYPE benefits directly, supporting its bullish run.

Read more: Why Hyperliquid Price (HYPE) Could Surge and Trending?

What’s Next for HYPE?

Bullish Case: Continued Ecosystem Growth

If Hyperliquid’s key metrics like TVL and DEX volume keep climbing, it could boost confidence in HYPE and limit any major pullbacks. Strong whale accumulation and rising liquidity inflows suggest that demand remains robust, potentially pushing prices higher.

Bearish Risks: Liquidation and Pullback

On the flip side, the price-RSI divergence and rising long liquidations signal that a correction could be looming. If selling pressure intensifies or key metrics like TVL and DEX volume drop sharply, HYPE could face a heavier bearish outcome in the coming weeks.

Conclusion

HYPE’s recent ATH and Hyperliquid’s booming ecosystem paint a bullish picture, driven by strong adoption and whale activity. However, technical signals like the price-RSI divergence and rising liquidations hint at growing bearish pressure. The sentiment remains cautiously optimistic, but HYPE’s next moves will likely depend on whether ecosystem growth can outpace the risks of a pullback. Keep an eye on TVL, DEX volume, and liquidation trends to gauge where HYPE heads next.

FAQ

Q1: What does the price-RSI divergence mean for HYPE right now?

A1: It’s a red flag. While HYPE’s price hit ATH, RSI momentum is fading, hinting a pullback may hit soon if bulls lose steam.

Q2: Why are rising long liquidations a bearish signal?

A2: More long positions getting wiped means traders are overleveraged, often a sign the rally’s overheating and sellers are gaining ground.

Q3: How do TVL and DEX volume affect HYPE’s price?

A3: Higher TVL and DEX volume = stronger demand and ecosystem health. If they drop, HYPE’s price may follow the downtrend.
 

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