HYPE Token Sees 0.25% Gain Amid Whale Standoff, Retail Traders Bullish

Two whales are currently engaged in a battle over the future direction of the HYPE token, with each setting different targets for the asset. This standoff has created a situation where retail derivative traders could potentially influence HYPE’s next move in the market.

Hyperliquid [HYPE] has experienced a slight pause in its rapid price growth over the past 24 hours, recording a small increase of 0.25% after hitting a 13.31% monthly high. Analysts suggest that retail derivative traders may have influenced this drop. However, this group could still impact HYPE’s next move as the whale standoff continues.

One whale, anticipating a rally, opened a $15.54 million position at $11.93. This position currently holds a 34.59% profit with a liquidation price at $3.25, while the market trades at $18. On the other hand, another whale holds a $12.80 million position opened at $14.209. This position is down 22.13%, with a liquidation price of $25.95. However, the profit on the long position doesn’t confirm that the market will move in its favor, nor does the loss on the short position guarantee its failure.

To assess where the market might move, the activity of retail derivative traders on HYPE was examined, specifically whether they’re buying or selling, as they could play a decisive role. Most retail derivative traders are betting on a rally and have opened long positions, aligning with bullish market sentiment. Market volume has surged over the past 24 hours, accompanied by a slight price increase. At press time, market volume was up by 5.73%, surging to $274.91 million, signaling growing buying momentum.

The Volume-Weighted Funding Rate has remained in positive territory since the 20th of April, suggesting most positions in the market are from traders expecting a rise in HYPE’s value. This metric combines derivative market volume with funding rate data to determine whether positions are bullish or bearish. A positive reading, like HYPE’s current rate, indicates bullish sentiment among traders. Similarly, Open Interest remains positive, reaching its February 22 high, when market positions surpassed $560 million, mainly from long traders. Additional indicators confirm that derivative traders continue to align with the market’s bullish trend.

Over the past 24 hours, retail derivative traders betting against a bullish move for HYPE have lost $47,790 as the market gained momentum. These losses could grow as pressure mounts on short traders. A closer look at 12-hour liquidation data shows that of the $42,760 in forced liquidations, short traders lost $37,230 compared to $5,530 for long traders. This sharp contrast favors bullish traders. Finally, the Funding Rate shows long traders are paying a premium fee to short traders, with a current rate of 0.0099%. In this scenario, the market favors long traders who are trying to prevent a large gap between spot and futures prices. A higher funding rate could further support HYPE’s bullish trend.

In summary, the derivative market traders are betting on a HYPE rally. If momentum among this group keeps rising, the whale betting on a price drop may face liquidation.