Hyperliquid News Today: HYPE's $50 Standoff Pits Bulls Against Bears in High-Stakes DeFi Showdown

Hyperliquid's native token HYPE remains in a critical standoff below the $50 psychological threshold, with conflicting signals emerging from on-chain data and technical indicators. The perpetual futures-focused decentralized exchange (DEX) has seen its weekly fees and revenues drop to $11.84 million and $10.63 million, respectively, from $34.86 million and $31.10 million in early October, reflecting waning demand amid broader market volatility, according to an FXStreet report. Meanwhile, bullish sentiment persists as traders anticipate a potential breakout, with open interest in HYPE futures rising 9.11% to $2.17 billion over 24 hours, a trend highlighted in a Brave New Coin analysis.

The market's attention is now fixed on the $50 level, a key resistance zone marked by the October 5 and September 20 highs at $51.432 and $56.596. A failure to reclaim this level could trigger forced liquidations of $22.31 million in long positions at the $46 support, according to CoinGlass data as reported by the FXStreet report. Conversely, short sellers are also at risk, with $14.74 million in short liquidation converging at $50.49, suggesting buyers have a tactical edge, a view echoed in the Brave New Coin analysis.

Retail and institutional activity is amplifying the tension. Prominent trader Machi Big Brother recently added 220,000 USDC to Hyperliquid, using the funds to bolster long positions in HYPE and ETH worth over $18 million, according to a Bitget report. This move aligns with broader on-chain trends showing a shift toward long dominance, as profitable exposure exceeds $50 million with gains surpassing 20%, a pattern detailed in the Brave New Coin analysis. Short sellers, meanwhile, are under pressure, with the largest short position—$66.35 million—sitting at a 13.4% unrealized loss, as the Brave New Coin analysis also notes.

Technically, HYPE is navigating a fragile equilibrium. The RSI on the 4-hour chart signals bearish divergence as the metric declines from overbought levels, while the MACD approaches a bullish crossover, observations first highlighted in the FXStreet report. This duality underscores the market's indecision: bulls aim to test $50.49 for a potential push toward $60, while bears brace for a pullback to the 50% Fibonacci retracement at $46.351, points outlined in the FXStreet report.

The path forward hinges on liquidity absorption. If buyers fail to clear the $50 barrier, a retest of the $45.775 low could trigger a cascading liquidation event. Conversely, a successful breakout would flip the $49–$50 range into support, setting the stage for a challenge at $62–$65, a potential all-time high zone identified in the Brave New Coin analysis.

With institutional and retail traders aligned behind the bullish narrative, Hyperliquid's next move could redefine its trajectory. As one of the largest DeFi protocols by revenue—excluding stablecoin issuers—Hyperliquid's performance will be closely watched for signs of sustained momentum or a reversal, a point emphasized in the FXStreet report.