Key Takeaways:
- HYPE’s 11% surge aligns with Bitcoin’s rally, pushing it back to $39 and near its all-time high—but a decisive break above $40 remains uncertain amid rising Open Interest and whale activity.
- While technical indicators suggest strength, HYPE’s fate hinges on Bitcoin holding above $109K; failure to sustain momentum could trigger another sharp deleveraging event.
Hyperliquid (HYPE) has surged 11.22% to reclaim the $39 level, closely trailing its all-time high of $39.12. This move comes on the heels of Bitcoin’s [BTC] strongest daily candle in over a month—up 4%—suggesting that crypto traders were lying in wait for a bullish signal from BTC to pounce on high-beta altcoins.
HYPE’s surge marks its second attempt this month to break through the critical $40 resistance. Previous efforts were quickly rejected amid broader market weakness, but this time, key indicators suggest more resilience. Open Interest (OI) has ballooned 11.90% to a record $1.69 billion—eclipsing levels seen during previous rallies—while RSI remains balanced even on lower timeframes, reducing immediate overheating concerns.
A fresh whale entry only adds to the intrigue. On-chain analytics firm Lookonchain highlighted a major buy-in of 126,353 HYPE at an average of $39.1, signaling significant conviction at a pivotal price zone. Still, this setup is eerily reminiscent of late May, when HYPE reached its all-time high on similarly rising OI before collapsing by 20% in just five days.
The question now is: will this rally hold, or is another shakeout brewing?
Market watchers are wary. Liquidity is still heavily concentrated in derivatives, and leveraged longs are piling in. A sudden reversal in BTC or failure to break above $40 could trigger a rapid deleveraging event, dragging HYPE down with it—just like the post-May 26 sell-off.
Also Read: Hyperliquid Challenges Binance with $248B Perp Volume
Yet, optimism lingers. If Bitcoin can solidly hold $109K—or better, break through $110K—FOMO could reignite, giving HYPE the momentum it needs to clear $40 and enter price discovery.
For now, the breakout remains one candle away, but so does another shakeout. Traders eyeing the next move should tread carefully: while the upside is tempting, the downside remains brutally swift in this high-stakes altcoin game.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
