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Low HYPE demand follows Hyperliquid’s high DEX volume – Can bulls change this?
Hyperliquid (HYPE) has witnessed a surge in trading volume on its decentralized exchange (DEX), but the associated low demand is causing concerns among traders and investors. As the coin continues to defy expectations by breaking above mid-range resistance at $39.1, the question remains whether bulls can alter this situation.
The recent rally saw HYPE climb above the aforementioned level, marking a crucial point of support. However, the absence of substantial buying pressure and increasing supply is hindering any further upward momentum. This unusual phenomenon has led to a lack of significant price movement, despite an increase in DEX trading volume.
A closer examination of the data reveals that new users have been flocking to the HYPE platform over the past two months, indicating a potential catalyst for the coin’s future performance. Nevertheless, this influx is yet to translate into substantial buying pressure and increased demand.
Market analysis suggests that bulls must generate renewed interest in order to change the current trajectory. A more favorable environment would require substantial trading volume and sustained upward momentum, as witnessed during the initial recovery from $36. Any efforts to defend the mid-range level at $37.9 as support could potentially pave the way for a move towards the range high.
Interestingly, the liquidations chart has revealed that the surge in price was met with limited short liquidations and no significant long liquidations, indicating that short sellers may have been caught off guard by HYPE’s unexpected rally. Additionally, a positive funding rate suggests a short-term bullish outlook.
To confirm a reversal of fortunes for HYPE, traders are advised to closely monitor Open Interest, as a 4% increase in the last 24 hours is a hopeful sign. However, it remains crucial that bulls present greater trading volume and buying pressure to support their narrative.
As HYPE’s momentum continues to unfold, the crypto market will be closely watching for signs of renewed demand and increased enthusiasm from traders.
Source: ambcrypto.com
