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Trading activity in Hyperliquid has increased dramatically, with 24-hour volume on major exchanges rising by almost 100%. Price action is still under pressure despite the increase in participation, with HYPE falling to the $55 region and losing about 8% during that time. Instead of simple accumulation, the market appears to be engaging in aggressive two-way trading, as indicated by the disparity between volume and price.
Traders aim at repositioning
According to exchange data, Binance leads trading activity with over $500 million in daily HYPE volume, followed by Hyperliquid, LBank, Bybit, and OKX. After several weeks of falling prices, spot and derivatives activity both increased, suggesting that traders are repositioning as volatility resumes.
Over the course of the last 24 hours, positions worth about $15.3 million were liquidated, nearly all of which came from long positions. In contrast, short liquidations hardly registered, indicating that traders who had positioned for a rebound prior to confirmation were largely penalized by the most recent decline.
Additionally, the technical picture is still fragile. The 200-day EMA near $50 is now the last significant dynamic support as HYPE has dropped below its 20-, 50-, and 100-day exponential moving averages. The 200-day average has historically been used to distinguish between longer-term bull and bear phases, so the current decline is especially significant. Sellers swiftly rejected the price's brief attempt to reclaim the 100-day EMA around $57.
Since then, the token has started to drop again, indicating that the moving average has shifted from support to resistance. Bulls remain defensive until HYPE closes back above this level. Momentum indicators present a comparable picture. The RSI has declined to 35, getting close to oversold territory but not quite indicating an extreme reading.
Volumes dictate market direction
This allows for further declines before buyers are presented with a more compelling technical case to intervene. Nonetheless, the sharp rise in trading volume merits consideration. These kinds of volume spikes usually occur close to significant market turning points. They may signify the start of a longer bearish leg driven by institutional selling or capitulation, in which weaker holders sell their positions prior to a reversal.
Now, the 200-day EMA at $50 is the crucial level to watch. If that support is successfully defended, a relief rally back toward $57–61, where the 50-day and 100-day moving averages converge, may be possible. However, HYPE runs the risk of prolonging its correction and erasing a greater percentage of the gains made in the first half of 2026 if that support fails.
For the time being, the doubling of trading volume indicates that interest in Hyperliquid has resumed; however, the market is still unsure whether this activity signals capitulation or the start of another selling wave.
Dan Burgin
U.Today Editorial Team
