news 
Low Hype Demand Follows Hyperliquid’s High DEX Volume – Can Bulls Change This?
Hyperliquid [HYPE] has seen a remarkable performance over the past week, with its 12% gains ranking among the highest in crypto’s top 20 by market capitalization. Despite this, recent attempts to break above $39 have been met with resistance, as demand failed to follow suit. The decentralized exchange (DEX) saw high trading volume, but low hype demand is a concerning sign for bulls.
The previous chart revealed that the DEX traded at steady levels comparable to those seen in February. In a surprising twist, new user count has also shown an upward trend over the past two months. This could potentially drive a resurgence in HYPE’s price.
From a technical perspective, Hyperliquid has demonstrated a bullish market structure after crossing the $37.25-level on 28 June. Since then, bulls have attempted to challenge the $39.12 local top but were unable to do so. The On Balance Volume (OBV) has been flat recently as trading volume dwindled from last week’s levels. Interestingly, it was observed that low hype demand accompanied Hyperliquid’s recovery from the $36 level earlier this month.
The Relative Strength Index (RSI) displayed a reading of 56 indicating bullish momentum. However, without sustained buying demand, the upward movement could easily reverse course.
Furthermore, Hyperliquid has traded within a range (white area) spanning from $31 to $44.8 since late May. The recent rally carried the price above the mid-range level at $37.9. If bulls can successfully defend this level as support, a move towards the range high could become possible. However, it is crucial that buying volume increases to increase the chances of recovery.
Liquidations charts from Coinglass show short liquidations during the bounce from $36 to $39 but few long liquidations, indicating short-term bullish expectations. Additionally, positive funding rates were observed over the past week, along with a 4% increase in Open Interest. These indicators combined indicate short-term bullish sentiment.
Source: ambcrypto.com
