Bitcoin News Today: HYPE Loses 8.4% as Seller Dominance and Bitcoin Stagnation Weigh on Momentum

Hyperliquid, a decentralized exchange (DEX) operating on the Bitcoin network, has seen a noticeable slowdown in trading activity over the past two months, despite maintaining a generally strong performance. The HYPE token, integral to the platform’s liquidity and functionality, has not experienced the expected surge in volume or user adoption. Observers point to Bitcoin’s recent trading pattern as a potential factor in this stagnation, as the broader market’s uncertainty appears to be influencing investor behavior on Hyperliquid [1].

Data from CryptoQuant reveals that the HYPE spot market has been dominated by seller activity since late June, as indicated by the Taker Sell Dominant phase in the Spot Taker CVD metric. This seller dominance has contributed to the token’s inability to break through the $45–$50 price range, a key resistance area. Over the past week, HYPE has lost 8.4%, reinforcing the bears’ slight advantage in the short-term outlook [1].

Meanwhile, daily trading volume on the platform has remained stable for six consecutive weeks, but new user growth has significantly declined. This trend occurs despite Bitcoin trading near all-time highs and a 25% expansion in the altcoin market cap since mid-July. The lack of growth in user numbers and trading fees suggests that the broader market sentiment, rather than a flaw in the platform itself, is a primary factor behind the slowdown [1].

On the 1-day chart, HYPE’s price structure still appears bullish, with higher lows formed since May indicating a resilient foundation. However, the DMI (Directional Movement Index) highlights a lack of a strong directional trend, underscoring the token’s current consolidation phase. Analysts suggest that a clear move in Bitcoin—either upward or downward—could serve as a catalyst for renewed activity in HYPE. A breakout in Bitcoin could attract fresh liquidity and drive interest in Bitcoin-based platforms like Hyperliquid, potentially reinvigorating HYPE’s momentum [1].

The token’s fate remains closely tied to Bitcoin’s performance and the broader market’s confidence. For now, the market is in a holding pattern, waiting for a decisive move that could shift the balance between bulls and bears. Investors and traders are advised to keep a close watch on Bitcoin’s next steps, as they may signal the direction for HYPE in the near term.

Source:

[1] Decoding Hyperliquid’s slowdown: Why Bitcoin’s next move can define HYPE, AMBCrypto, https://ambcrypto.com/decoding-hyperliquids-slowdown-why-bitcoins-next-move-can-define-hype/