- HYPE recently hit a new all-time high above $44, driven by strong utility and smart money inflows, but bearish signals like RSI divergence and a spike in long liquidations have raised caution.
- While ecosystem metrics such as DEX volume and TVL remain robust, traders are closely watching for signs that could determine whether HYPE will continue its rally or face a sharp pullback.
Hyperliquid’s native token, HYPE, has been on an impressive rally over the past two months, surging by over 365% from its yearly lows and reaching a new all-time high just above $44.
However, recent market signals suggest that bullish momentum may be running out of steam, raising concerns among traders about a potential retracement.
Despite strong utility and whale interest sustaining HYPE’s price, the market is showing signs of a shift toward bearish sentiment. One of the clearest indicators is the emergence of a price-RSI divergence, often a precursor to trend reversals.
While prices continued climbing to new highs, the Relative Strength Index (RSI) began to decline—suggesting weakening buying momentum.
Adding fuel to this cautionary outlook is the surge in long liquidations. Data from Coinglass shows HYPE long liquidations reached $2.11 million on Friday, the highest in six months, dwarfing the $900,000 in short liquidations during the same period. In the past week, long liquidations have consistently outpaced shorts, pointing to increased volatility and a possible reversal in sentiment.
Yet, not all indicators point to doom and gloom. Open interest in HYPE futures peaked at $1.90 billion in the last 24 hours, accompanied by a record-breaking $3.3 billion in daily derivatives volume on June 14. These figures suggest that institutional players and “smart money” remain actively engaged, possibly preparing for large moves, either up or down.
The big question is whether this elevated activity is a setup for another leg higher or the start of a deeper correction.
To understand the potential trajectory of HYPE, one must consider the broader performance of the Hyperliquid ecosystem. The network’s total value locked (TVL) surged to a new high of $1.795 billion, while stablecoin liquidity peaked at $3.88 billion.
Moreover, Hyperliquid’s decentralized exchange (DEX) has seen rapid growth, daily trading volume rocketed from $50.9 million in early April to over $735 million by Friday, according to DeFiLlama.
This expansion reflects strong adoption of Hyperliquid’s core offerings, with HYPE serving multiple roles including governance, transaction fees, liquidity provision, and staking. Such real-world utility adds a layer of resilience to the token’s market value.
Still, whether HYPE will bounce or break depends largely on upcoming data. Sustained growth in TVL and DEX activity could support further gains, while sharp declines in those metrics may trigger a broader sell-off.
In the short term, traders should brace for volatility. With smart money still active but sentiment tilting bearish, HYPE sits at a crucial juncture—its next move could redefine the trend for the weeks ahead.