Hyperliquid Rises as Daily Volumes Jump Near Record Highs – Is the Sell-Off Over?

This counterintuitive behavior seems to be associated with its on-chain metrics, as the trading platform booked its fourth best day of the year in terms of trading volumes after $13 billion worth of its perpetual contracts were negotiated on April 6.

Monthly trading volumes have been going down since they peaked in January at $205 billion. By the end of March, $169 billion was negotiated on the platform. The total for April within the first 9 days currently sits at $53, which results in a run rate of $176 billion give or take.

Compared to the same period last year, Hyperliquid has more than tripled its trading volumes in just a year.

Meanwhile, trading volumes for its native token HYPE have shot up by 41% in the past day as the cryptocurrency is used to pay for platform fees and commissions.

HYPE Seems to Have Enough Fuel to Get to $14

Hyperliquid has been under pressure lately after the JELLY fiasco and certain other incidents involving poor risk management practices that resulted in severe losses for some investors.

However, the performance of its native token has been resilient despite the backlash and has booked weekly losses of just 7.8% while some of its rivals like Uniswap (UNI) and Jupiter (JUP) have faced more severe drops of 18% and 16% respectively during this same period.

Despite the recovery, HYPE is still trading nearly 63% below its all-time high of $35.02 on December 21, 2024.

Stablecoin balances within Hyperliquid have dropped by nearly 22% in the past month to $1.97 billion, meaning that traders have either taken out or traded $532 million worth of USDC – the only supported stablecoin.

Moving to the charts, the daily chart shows that these latest upticks are still within the normal ranges of a retracement, meaning that HYPE is still on a downtrend until otherwise confirmed.

The $10 level seems to be a critical psychological threshold for the token as buy orders flooded the market once the price got below those levels.

Moving forward, the $14 area seems to be the most relevant resistance for HYPE in the near term. If the price rejects a move above this area, it would confirm a text-book Fibonacci retracement of the previous downtrend and could result in HYPE dropping to a lower low in the next few weeks.

Momentum is strong in the daily chart so short-sellers should be careful as HYPE has managed to defy poor sentiment, Trump’s tariffs, and more so it may easily break above $14 if the rally gains strength.

Hourly Chart Show Signs of an Upcoming Pullback

In the 1-hour time frame, a rising wedge pattern has been forming since Saturday. As volatility has subsided (a bit), the price has been fluctuating within a narrower range.

Rising wedges are typically bearish. However, the pattern has not been confirmed yet. For that to happen, the price action would have to break below the lower trend line and this bearish breakout should be accompanied by higher volumes and sell signals on momentum indicators.

For now, the Relative Strength Index (RSI) is in bullish territory as it stands above its 14-day moving average while the MACD shows that positive momentum is accelerating.

If traders expect that the rally will continue, a good plausible entry would be at $11.97 or $11.63 as these are both key Fibonacci retracement levels from which the price can bounce to resume the uptrend.