The crypto market is having a bit of a moment, with Bitcoin knocking on the door of $98k and Ether and friends painting the charts green. Yet HYPE, the native token of Hyperliquid DEX, decided to be a party pooper, slipping below $25 after a 3% dip in the last 24 hours. This bearish behavior is happening even as on-chain metrics improve and derivatives activity shows signs of life.
Hyperliquid's DeFi ecosystem is quietly flexing some muscle. Staking activity jumped nearly 6% to $1.37 billion on Wednesday, a clear signal that long-term holders aren't sweating the short-term price action. This staking surge also helped lift the network's Total Value Locked, which had dipped to $1.3 billion from its September 19 peak of $2.79 billion. When investors lock tokens in smart contracts for the long haul, it typically reduces the circulating supply—a classic bullish setup.
Meanwhile, the derivatives market is showing a mixed but intriguing picture. According to CoinGlass, futures Open Interest has cooled to $1.3 billion from $1.41 billion, suggesting retail demand is taking a breather despite the broader market rally. This pullback might actually set the stage for a cleaner move higher.
Technically, the HYPE/USD 4-hour chart looks surprisingly bullish. Trading at $24.95, the Relative Strength Index sits at 55—above the neutral 50—hinting at recent bullish momentum. The MACD is also creeping toward the neutral zone, signaling traders might want to lean into risk. If the bullish trend resumes, HYPE could target a breakout above the 50-day EMA at $28.22, with the 100-day EMA at $32.13 and 200-day EMA at $33.25 as potential follow-ups. However, if bears maintain control, a retest of Monday's low at $23 remains on the table.
