Hyperliquid’s HYPE has been the best performer among the top 10 cryptocurrencies so far this week. The coin is up by more than 26% in the last seven days and has now hit a new all-time high.
HYPE surged above $62 on Thursday, surpassing the previous all-time high price of $59. The rally was driven by strong institutional inflows and sustained momentum in decentralized perpetual futures volume.
Institutional and retail demand continue to push HYPE higher
HYPE is outperforming the other leading cryptocurrencies thanks to growing institutional demand. The spot HYPE ETFs were launched a few days ago and have already accumulated millions of dollars in inflows.
According to data obtained from CoinGlass, Hyperliquid ETFs recorded an inflow of $16.7 million on Thursday, following the $22 million they reported the previous day.
Bitwise’s BHYP ETF led the way, while 21Shares’ ETF is also gaining traction.
Bitwise previously stated it will begin allocating 10% of the ETF’s management fees toward holding HYPE on its balance sheet.
Grayscale also reportedly purchased $10 million in HYPE, adding to the surge in institutional inflows over the past week.
Retail demand for Hyperliquid is also on the rise.
On-chain data reveals that Hyperliquid is a leader in the perpetual decentralized exchange (DEX) sector, controlling roughly 55% of total value locked (TVL) among decentralized perpetual exchanges.
According to DeFiLlama, Hyperliquid’s TVL stands at $5.4 billion, controlling over 50% of the total $8billion in the DEX ecosystem.
Last month, the platform processed roughly $190 billion, accounting for nearly 4% of total global perpetual exchange activity.
The derivatives side also shows a growing retail demand for HYPE. CoinGlass’s futures Open Interest (OI) for HYPE now reads $2.70 billion, up 3% in the last 24 hours.
The OI-Weighted Funding Rate of 0.0069% also indicates that the longs are paying the shorts.
The long-to-short ratio also stands at 0.9794, adding further confluence to the bullish narrative.
Hyperliquid technical outlook: Is HYPE heading towards $70?
The HYPE/USD 4-hour chart is bullish and efficient as Hyperliquid has set a new all-time high. HYPE has slightly retraced from its $62 all-time high and is now trading at $57.
The momentum indicators suggest that the bulls are not willing to give up control yet. The RSI of 73 shows that HYPE is currently in the overbought region and might undergo a slight correction.
The MACD lines are also within the positive territory as the bulls remain in firm control.
If the rally persists, HYPE could recapture the $62 level and target a new high around the $70 mark.
An extended bullish scenario would allow HYPE to extend its rally towards the $75-$80 areas.
However, if the market undergoes a correction, HYPE could retest the minor resistance level at $55.
A daily candle close below this level would allow HYPE to drop to the Wednesday low of $46, where buyers would likely absorb the selling pressure.
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