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After a sharp correction from the $76 all-time high area, Hyperliquid may be exhibiting the first significant indications of stabilization. Derivatives data indicate traders are progressively returning to the market, setting the stage for a possible recovery attempt, even though HYPE is still under pressure on longer timeframes.
Hyperliquid's potential for recovery
Futures flow activity is one of the most noteworthy developments. The most recent market data show that HYPE saw an 8-hour net futures inflow of about $1.35 million, or a 124 percent increase in net flow activity. The 4-hour period was likewise positive, with net inflows of more than $3.2 million. These numbers show that, after a number of sessions that were dominated by profit-taking and liquidation-driven selling, new capital is starting to enter the derivatives market.
The moment is crucial. HYPE recently underwent a sharp decline from its peak of $76 to the mid-$50 range. Sentiment moved into much more cautious territory as a result of the decline, which erased nearly 27% of the local high. The overall technical structure is still far healthier than that of the majority of major altcoins despite the sell-off. The token's 50-, 100-, and 200-day moving averages are still above its current level.
Bulls arent' ready to give up
Since it is currently the first significant support level below the market, the 50-day average at $51 is still very significant. At the same time, bulls continue to dominate long-short ratios on major exchanges. Both Binance and OKX display a higher proportion of long positions than short positions, indicating that despite the recent correction, traders are still placing bets on higher prices.
But there are hazards. Spot market flows are still inconsistent, and there are still times when there are net outflows in some shorter-term futures metrics. Additionally, trading volume has decreased from the peak levels observed during the rally toward all-time highs. This implies that buyers have not fully regained control and that enthusiasm has significantly decreased.
Momentum metrics show this moderation. Much of the speculative excess that built up during the previous rally has been eliminated as the RSI has fallen from overbought territory into the low-60 range.
Technically speaking, the current decline is less like a total trend reversal and more like a healthy correction within a broader uptrend. Bulls continue to have an advantage as long as HYPE stays above the $50-$51 support range.
The recent spike in futures inflows indicates that market players are starting to position for a rebound, but it does not ensure one right away. HYPE may soon try another move toward the $60–$65 range if buying pressure keeps increasing.
U.Today Editorial Team
Dan Burgin
