Hyperliquid (HYPE) Price Slips on Profit Taking, Open Interest Surpasses $1.5 Billion

• Hyperliquid's open interest has surged to $1.56 billion, with Ripple Prime's integration of on-chain perpetual contracts for traditional commodities boosting institutional exposure according to TradingView.
• HYPE's price dropped 3% amid increased selling pressure due to token unlocks, with $376 million worth of tokens now available for trading, adding to market supply as reported by Bitget.
• The token is consolidating near $37.9, with bearish structure forming on the 4-hour chart and a fair value gap between $30.88 and $33.50 under close monitoring according to MEXC.

Hyperliquid's open interest (OI) has reached a record $1.56 billion, with 43.35 million tokens committed to the futures market. This surge is largely attributed to Ripple Prime's integration of on-chain perpetual contracts for traditional commodities, allowing institutional participants to hedge decentralized derivatives against traditional market positions according to TradingView.

The price of HYPE has fallen by 3% in the last 24 hours, dropping from $38.77 to $37.04. This decline is attributed to a major liquidation event and the unlocking of $376 million worth of tokens, representing 2.39% of the total circulating supply. This unlock has contributed to increased selling pressure, especially in a broader context of global uncertainty due to the U.S.-Iran war as Bitget reports.

Technical analysis indicates a bearish shift in Hyperliquid's price structure, with the 4-hour chart showing lower highs and lower lows. The price is currently near $37.9 and is testing a key support level. A breakdown below $35.03 could trigger mechanical selling pressure and accelerate the decline, while a rebound above $37.9 could stabilize the market according to MEXC.

Why Is HYPE's Price Behavior Attracting Attention Now?

Hyperliquid's price has seen heightened volatility due to a combination of factors, including token unlocks and broader market sentiment. The unlocking of $376 million worth of HYPE tokens has increased the available supply, potentially contributing to downward pressure on the price according to Bitget.

In addition, global geopolitical tensions, particularly the U.S.-Iran war, have influenced the broader cryptocurrency market, causing a sell-off in Bitcoin and other tokens. The DeFi sector has also seen a decline in trading volumes and token prices, affecting platforms like Hyperliquid as Bitget reports.

What Do Technical Indicators Suggest for HYPE's Price Outlook?

Technical indicators show a potential bearish shift for HYPE. On the 4-hour chart, the token is in a bearish structure, forming lower highs and lower lows. A key fair value gap between $30.88 and $33.50 is under watch, as it could become a target for price movement if the bearish trend continues according to MEXC.

The Klinger Oscillator (KVO) is currently declining, indicating deteriorating buying momentum. A confirmed crossover below zero could shift volume-weighted momentum from bullish to bearish, potentially accelerating the decline in HYPE's price as Yahoo Finance reports. Momentum indicators like RSI and Stochastic remain neutral, suggesting a market in transition according to MEXC.

What Are the Key Price Levels to Watch for HYPE?

Key support levels for HYPE include $37.9, with a critical juncture at $35.03. A break below this level could trigger further downward momentum, with potential targets in the $30.88–$33.50 range according to MEXC.

Conversely, a sustained rally above $37.9 could stabilize the price and open the door for a potential rebound to $38.50–$39 as Bitget reports. Traders are monitoring these levels closely for confirmation signals such as a new Change of Character (ChoCh) or Break of Structure (BOS), which could determine the next directional move according to MEXC.