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Low HYPE demand follows Hyperliquid’s high DEX volume – Can bulls change this?

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Mid-range resistance at $39.1 was breached, but HYPE bulls still appeared weak.

Low HYPE demand follows Hyperliquid's high DEX volume - Can bulls change this?
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  • Steady trading volume and hike in new users on the DEX were encouraging factors
  • Hyperliquid looked likely to rally towards $45, provided it can maintain its bullish structure

Hyperliquid [HYPE] has performed well over the past week, with its 12% gains among the highest in crypto’s top 20 by market capitalization. However, the $39-level rebuffed HYPE’s bulls in recent hours. This, despite the decentralized exchange posting good trading volume too.

The aforementioned chart revealed that the DEX’s volume was steady, comparable to levels from February.

Interestingly, the new user count has also been on the rise over the past two months. Could this drive a resurgence in HYPE’s price?

Technical analysis underlines key HYPE levels to watch

Hyperliquid 4-hour Chart

Source: HYPE/USDT on TradingView

The 4-hour chart showed a bullish market structure for HYPE after it went above the $37.25-level on 28 June. Since then, the bulls have challenged the $39.12 local top, but were unsuccessful.

The OBV has been flat in recent days as the trading volume dwindled from last week. The low HYPE trading volume during the recovery from $36 was a sign of weak bullish sentiment. The RSI showed bullishness with a reading of 56, but without sustained demand, the momentum could more easily reverse.

Since late May, HYPE has traded within a range (white) from $31 to $44.8. The recent rally brought the price above the mid-range level at $37.9. If Hyperliquid bulls can defend this level as support, a move towards the range high would be possible. However, a hike in buying volume would be necessary here.

Hyperliquid liquidations

Source: Coinglass

The liquidations chart showed that the bounce from $36 to $39 saw short liquidations, but few long liquidations. According to Coinalyze data, the funding rate has been positive recently as well. The Open Interest was up 4% in the last 24 hours. Together, they signaled short-term bullish expectations.

Traders would want to see greater trading volume and demand, which would increase the chances of a recovery. Bitcoin [BTC] can also influence market sentiment and move HYPE’s price.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

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Akashnath S is a Senior Journalist and Technical Analysis expert at AMBCrypto. He specializes in dissecting price action, identifying key market trends through advanced chart patterns, and forecasting both short-term and long-term asset trajectories. His distinct analytical method is grounded in his academic training as a Chemical Engineer. This background provides him with a systematic, process-oriented approach to market data, enabling him to analyze the complex dynamics of financial markets with precision and objectivity. Having actively covered the cryptocurrency space since the landmark 2017 market cycle, Akashnath possesses years of experience navigating both bull and bear markets. This seasoned perspective is critical to his insightful reporting on market volatility and evolution. As an active market participant, Akashnath enhances his analysis with crucial, hands-on experience. This practical application of his technical skills ensures his insights are not merely theoretical, but are also relevant and actionable for an audience looking to understand and navigate trading opportunities. He is dedicated to educating readers on the nuances of technical analysis, empowering them with the knowledge to make more informed financial decisions.
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