In a significant development within the cryptocurrency landscape, Hyperliquid has solidified its status as a market leader, with its native token HYPE reaching a new all-time high nearing $60. This surge comes amidst a general recovery in the crypto market, prompting interest from both retail investors and whales alike.
The HYPE token experienced an impressive rally, hitting a peak of $59.30, buoyed by trading volumes that exceeded $730 million. A critical factor behind this growth was the recent listing on BitGo, which injected additional liquidity into the market. As HYPE gains traction, it is becoming less reliant on the Hyperliquid platform, with increasing availability across major exchanges.
Recent whale activity reveals that sentiments towards HYPE are relatively balanced. More than 55% of whale investors are maintaining long positions, although there remains a notable degree of short selling. The largest whale in this ecosystem is undertaking an aggressive strategy, holding an $86 million short position, which raises questions about market stability.
Analyses from Nansen indicate that investment strategies are diverse among wallet types. For instance, ‘smart money’ wallets have a combined $86 million in long positions compared to $40 million in shorts. Meanwhile, influencer wallets show a stronger inclination towards long positions, with $47 million backing up bulls and only $22 million focused on bearish wagers. Overall, whale trading demonstrates a more neutral sentiment as the market reacts to price fluctuations.
HYPE’s open interest has rebounded to over $2.1 billion, with over $1.52 billion of this value concentrated in the Hyperliquid exchange. This impressive figure suggests that HYPE is positioned for both direct spot buying and derivative trading, driven by a prevailing bullish sentiment in the market.
Looking ahead, predictions indicate another potential rally for the HYPE token, with forecasts on Polymarket suggesting it could reach $70 in the short term. Analysts highlight that the chances of a decline appear slim, as indicated by the low trading volumes characteristic of recent market behavior.
However, HYPE faces possible price corrections, especially with a threshold of around $53 identified as a first level of accumulation for investors. Data from Hyperdash indicates that while whales express optimism about HYPE’s future, there remains a risk of a short-term dip to $47 as long positions are examined.
In addition to these developments, forthcoming discussions surrounding the introduction of Hyperliquid’s native stablecoin, USDH, are generating interest in how trading dynamics may shift. Currently, USDC is the primary stablecoin used as collateral on Hyperliquid, comprising 85% of its stablecoin supply. Although USDH will serve important roles within the ecosystem, it is not expected to replace USDC as a collateral asset in the immediate future.
As Hyperliquid prepares for the evolution of its ecosystem, including the possibility of new native tokens after a phase of point farming, market participants remain focused on how these changes will impact trading strategies and overall investor sentiment.
