Hyperliquid (HYPE) has been the center of attention in the cryptocurrency market as two whales battle over its next direction. With one whale betting on a price increase and the other expecting a drop, retail derivative traders may ultimately determine where HYPE heads next. Despite a slight pause in its rapid price growth, HYPE has seen a small increase of 0.25% after hitting a 13.31% monthly high.
The long trader, anticipating a rally, holds a $15.54 million position at $11.93, currently enjoying a 34.59% profit. On the other hand, the short trader holds a $12.80 million position opened at $14.209, down 22.13%. However, the profit on the long position and the loss on the short position do not guarantee the market’s direction. To assess where the market might move, retail derivative traders’ activity on HYPE is crucial.
Most retail derivative traders are betting on a rally and have opened long positions, aligning with the bullish market sentiment. Market volume has surged over the past 24 hours, reaching $274.91 million, indicating growing buying momentum. The Volume-Weighted Funding Rate and Open Interest both remain positive, further supporting the bullish trend for HYPE.
Over the past 24 hours, retail derivative traders betting against a bullish move for HYPE have incurred losses as the market gains momentum. Short traders have faced higher liquidation amounts compared to long traders, favoring the bullish sentiment. The Funding Rate shows long traders are paying a premium fee, further supporting the market’s bullish trend and potentially leading to the liquidation of the whale betting on a price drop.
In conclusion, the derivative market traders are leaning towards a HYPE rally, with increasing momentum among retail derivative traders. If this bullish trend continues, the whale betting on a price drop may face liquidation. Monitoring the activity of retail traders and key indicators like the Volume-Weighted Funding Rate will be crucial in determining HYPE’s next move in the market.
