What Fueled Hyperliquid (HYPE) Price’s 65% Rally And What’s Next?

Hyperliquid (HYPE) has delivered one of its strongest weekly performances in months, surging 65% to reach a near two-month high of $34.5. The rapid move followed weeks of consolidation and reignited interest across derivatives-focused traders. While the rally has been impressive, momentum indicators now suggest uncertainty. Investors are questioning whether HYPE can extend gains or if a corrective phase is approaching. HYPE Traders Are Pouring Money Market sentiment around Hyperliquid strengthened sharply as derivatives activity accelerated. Open Interest rose 43% within 48 hours, climbing from $1.21 billion to $1.73 billion. Such a rapid increase indicates a surge in new positions rather than short covering. This behavior typically reflects growing trader confidence in further price appreciation. Funding rates have remained positive throughout the rally, confirming that long positions dominate short exposure. When funding stays positive during rising Open Interest, it suggests traders are willing to pay a premium to maintain bullish bets. Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here. HYPE Open Interest. Source; Coinglass This structure often supports continued upside in the short term. However, it also raises liquidation risk if sentiment shifts abruptly. From a macro perspective, momentum indicators are flashing caution. The Relative Strength Index for HYPE spiked above the 70.0 threshold over the past few days, entering overbought territory. This signals that buying pressure may be reaching exhaustion after the sharp advance. Historically, similar RSI conditions for Hyperliquid have preceded pullbacks. Once buying momentum saturates, early entrants often secure profits. This selling pressure has previously led to swift corrections. Current conditions suggest the market may follow a similar pattern if demand fails to expand further. HYPE RSI. Source: TradingView HYPE Price Approaches Critical Test Over the...