Key Takeaways
- Hyperliquid token slides more than 2% on Monday, approaching critical trendline support near $68.50
- Open Interest declined by over 2% within 24 hours to reach $2.72 billion, accompanied by $2.48 million in leveraged long liquidations
- Institutional HYPE ETF products recorded $10.36 million in net inflows during the previous week — marking nine uninterrupted weeks of capital accumulation
- HIP-3 perpetual markets have expanded from just 2% to approaching 50% of Hyperliquid’s aggregate perpetual futures volume throughout 2026
- Critical technical support sits at the 50-day exponential moving average of $63.13; violation could trigger downside momentum toward $53.71
Hyperliquid (HYPE) is currently changing hands near $65 on Monday, registering a decline exceeding 2% as widespread risk aversion across markets weighs heavily on cryptocurrency valuations. This downturn compounds the losses experienced during the prior trading week.
Escalating geopolitical friction between the United States and Iran concerning oil tanker transit rights through the strategically vital Strait of Hormuz has prompted investors to retreat from risk-sensitive assets, with cryptocurrencies bearing the brunt of this flight to safety. Alternative tokens such as HYPE have experienced pronounced selling pressure amid this environment.
Derivatives market data compiled by CoinGlass reveals that Open Interest contracted by more than 2% during the last 24-hour period, settling at $2.72 billion. Combined liquidations reached $2.93 million, with positions betting on price increases accounting for $2.48 million of that figure.
The funding rate has experienced a dramatic collapse to 0.0275%, signaling an increasing number of market participants are adopting bearish positions. This represents a notable departure from the optimistic market sentiment that characterized previous weeks.
Institutional Capital Continues Accumulation
Despite near-term selling pressure, HYPE exchange-traded fund products attracted $10.36 million in net capital inflows throughout the previous week. This achievement represents the ninth consecutive week where institutional investors have directed fresh capital into HYPE-related investment vehicles.
Cryptocurrency analyst Michaël van de Poppe published an optimistic market assessment on July 12, declaring the HYPE chart “is ready to break out upwards” while projecting a price objective of $100. His bullish thesis rests on consistent revenue expansion, formation of higher peaks and troughs in price structure, and the asset maintaining position above both its 21-day and 50-day moving averages.
From a technical analysis perspective, HYPE is currently challenging a breakout from a significant ascending trendline positioned around $68.50. The 50-day exponential moving average located at $63.13 now represents the most immediate support threshold requiring monitoring.
The Relative Strength Index has deteriorated beneath the neutral 50 level to register 48, while the MACD indicator is tracking below its signal line. Both technical metrics suggest deteriorating upward momentum.
A confirmed daily candle closure beneath $63.13 would potentially activate downside movement toward the 50% Fibonacci retracement level situated at $53.71. Conversely, a bullish reversal would initially target the previous swing high positioned at $75.58.
HIP-3 Framework Experiences Explosive Adoption
Beyond immediate price dynamics, Hyperliquid’s HIP-3 infrastructure has experienced remarkable expansion. The HIP-3 protocol enables developers to launch permissionless perpetual futures markets directly on the blockchain.
Its proportion of aggregate Hyperliquid perpetual futures trading volume has soared from approximately 2% at the beginning of 2026 to nearly 50% presently. This explosive growth correlates directly with intensifying retail trader appetite for onchain equity derivatives trading.
TradeXYZ has emerged as the dominant platform within this category, operating markets including XYZ100 (which tracks the Nasdaq-100 index) alongside individual stock perpetual contracts on prominent companies such as Nvidia and Tesla, with settlements conducted in stablecoin denominations.
The continuous 24/7 market access represents a fundamental attraction — participants can respond to breaking news developments at any time without restrictions imposed by traditional market operating hours.
HYPE ETF products have now recorded their ninth consecutive week of institutional capital inflows, totaling $10.36 million as of the most recent reporting period.
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