Key takeaways
- Hyperliquid (HYPE) has fallen for four straight days as retail demand weakens amid broader uncertainty in the cryptocurrency market.
- Open interest and trading volume in futures contracts decreased, indicating reduced speculative activity.
- Institutional interest remains strong, with HYPE ETFs attracting $16.08 million in weekly inflows.
Hyperliquid (HYPE) remains under pressure for the fourth straight trading session, as retail traders reduce exposure amid rising geopolitical uncertainty and a broader risk-off mood across the cryptocurrency market.
While short-term sentiment has cooled, institutional investors continue to accumulate exposure, and activity within Hyperliquid’s real-world assets (RWA) ecosystem remains strong. These factors continue to support the token’s long-term bullish outlook.
Technical indicators also suggest that a decisive break above the $75-77 resistance area could ignite buying momentum and possibly push HYPE towards the psychological $100 level.
Retail traders retreat as market sentiment weakens
Retail participation in Hyperliquid has declined as investors grow more cautious amid renewed tensions in the Middle East, dampening appetite for risky assets.
according to Coinglass dataHYPE futures open interest fell to $2.68 billion, indicating a modest decline in leveraged positions.
Meanwhile, derivatives trading volume fell by 29% over the past 24 hours to $1.99 billion, highlighting weak market participation in the short term.
Despite the slowdown, bullish positions have not completely disappeared. The financing rate fell slightly to 0.0065% from 0.0078% the previous day, and remained in positive territory.
Positive funding rates generally indicate that long positions are still willing to pay a premium, suggesting continued optimism despite the recent pullback.
Overall, the derivatives data points to a cautious market as traders wait for greater clarity before making aggressive directional bets.
While retail demand has slowed, institutional investors continue to show confidence in Hyperliquid.
Exchange-traded funds (ETFs) focused on HYPE It attracted $3.33 million in new flows on Wednesday, bringing its total weekly flows to $16.08 million.
Steady capital flows suggest that larger investors remain optimistic about the project’s long-term growth prospects.
Meanwhile, Hyperliquid’s HIP-3 ecosystem — which supports perpetual contracts tied to tokenized real-world assets (RWAs) — continues to gain momentum.
Open interest across HIP-3 products rose to $3.10 billion, while trading volume increased by 40% over the past 24 hours and 28% over the past month.
Revenue has also remained stable at around $10 million over the past four weeks, reflecting continued user activity and growing demand for RWA-based trading products.
These metrics reinforce the view that institutional adoption and utility expansion remain the key drivers behind Hyperliquid’s long-term bullish narrative.
Technical Analysis: The $75-$77 area remains the key breakout zone
Technically, Hyperliquid is undergoing a healthy correction while maintaining its broader uptrend.
The symbol is approaching an upward support trend line near $66.54, an area that continues to support the current market structure.
More importantly, HYPE remains above the 50-day Exponential Moving Average (EMA) at $62.53 and the 200-day Exponential Moving Average (EMA) at $48.33.
Staying above these key moving averages indicates that buyers still maintain control of the long-term trend.
Key resistance lies between $75.76 – the June 1 swing high – and the R1 pivot level at $77.09. Together, these levels form the upper border of the ascending triangle, a chart pattern that often precedes bullish breakouts.
A successful move above this resistance area could open the door to the following upside targets: Pivot R2 at $89.14, Pivot R3: $101.35.
If the bullish momentum accelerates, the $100 psychological level could become a realistic near-term target.
Technical momentum indicators continue to favor bulls despite the recent correction. The Moving Average Convergence Divergence (MACD) indicator is still above its signal line, indicating that the upward momentum has not been completely lost.
Meanwhile, the Relative Strength Index (RSI) is near 42, just below the neutral zone. This suggests that there is still room for further upside if buying pressure returns.
Together, these indicators reflect neutral to positive momentum rather than a shift toward the downside.
Although the broader outlook remains constructive, traders should monitor downside support levels closely.
If HYPE loses the 50-day moving average at $62.53, sellers could push prices towards the S1 pivot level at $52.83.
A deeper correction could eventually lead to a test of the 200-day EMA at $48.33, which continues to be the basis of Hyperliquid’s long-term bull market structure.
As long as HYPE remains above these critical support levels, the broader uptrend remains intact despite continued short-term volatility.
