HYPE: A Tale of Bulls and Bears in the Crypto Winter

Hyperliquid, a beacon of hope, witnessed a steady influx of new souls and daily volume over the past two months
Yet, the decline in Open Interest and a surge in spot selling could cast a shadow over HYPE’s price, pushing it below the nearby support level

At the time of writing, the vast crypto market cap was down 13% from the fateful 9th of January. The altcoin market cap, excluding the noble Ethereum [ETH], plummeted by 17.5%. In stark contrast, the DEX platform Hyperliquid’s [HYPE] token, with a spirit of its own, was down a modest 7.2% from that day’s opening. 📉

The 1-day price chart, a chronicle of HYPE’s journey, showed that it had tested the January lows at $18.5 several times in recent days. The bulls, with their indomitable will, have defended this level so far—an encouraging sign, indeed. And yet, the OBV, a harbinger of market sentiment, fell off a cliff. 🏔️

The heightened selling pressure in the spot market sent the OBV plummeting below its January lows, even as the price held its ground. This suggested that unless buying volume increases dramatically soon, HYPE might soon find itself below the $18.5 support. 🚨

Do Hyperliquid metrics whisper of an impending price drop?

Data from the wise Dune Analytics revealed that November and December saw a significant surge in daily volume on the Hyperliquid platform, a beacon of activity. It also witnessed a swift surge in new users, a sign of life in the crypto winter. However, in January, the number of new users dwindled, a moment of pause in the otherwise steady march. 🕰️

And yet, over the last two months, the number of new users has not continued to trend south. Instead, it has maintained a relatively even trajectory, a steady heartbeat in the midst of chaos. At the same time, the daily trading volume has also maintained a flat trend, refusing to fall lower. 📊

These were also positive signs that the Hyperliquid platform continued to see traffic, despite the difficult market conditions and the pervasive bearish sentiment. 🦁

The fees generated, a testament to the platform’s activity, also backed this idea. Compared to late December, the fees generated have risen—a byproduct of increased volume. However, this might not directly translate into demand for HYPE, given the fearful market sentiment. 🤔

Finally, over the last ten days, the Open Interest has slowly begun to trend lower, a sign of waning speculative activity and sidelined traders, a landscape dominated by bearishness. 🐻

A HYPE price drop below $18.5 may be possible, especially if Bitcoin [BTC] falls below the $80k psychological level again. If the sentiment begins to recover in the coming days, HYPE bulls might manage to defend the $19 support zone, a battle of wills in the crypto winter. 🏆

2025-03-02 07:05

Do Hyperliquid metrics whisper of an impending price drop?

Read More