Hyperliquid (HYPE) has just recorded its strongest increase in months, rising by 65%, approaching the two-month peak at 34.5 USD. This rapid price increase comes after several weeks of sideways movement, creating significant interest among derivative traders.
Although HYPE has shown impressive growth, current momentum indicators indicate uncertainty. Many investors are wondering whether HYPE will continue to rise or if it is preparing to enter a correction phase.
HYPE traders are pouring money into
Market sentiment around Hyperliquid has strengthened significantly as derivatives activity has intensified. In 48 hours, Open Interest increased by 43%, from 1.21 billion USD to 1.73 billion USD. The rapid increase in Open Interest indicates that many new positions are being opened instead of short sell orders being closed. This often reflects traders' confidence in the potential for prices to continue rising.
The funding rates have remained positive throughout the bull run, confirming that buy orders are dominant over short sell orders. When the funding rate is positive along with increasing Open Interest, this indicates that traders are willing to pay extra fees to maintain their long positions with the expectation that prices will continue to rise.
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This type of market structure often helps sustain the upward momentum in the short term, but it also increases the risk of liquidation if sentiment unexpectedly reverses.
From a macro perspective, momentum indicators are signaling caution. The Relative Strength Index (RSI) of HYPE has surpassed the 70.0 threshold in recent days, entering overbought territory. This warns that buying power may have exhausted after a strong price increase.
In the past, instances where RSI reached similar levels with Hyperliquid often signaled that prices would quickly correct. When buying momentum peaks, early investors often take profits, creating selling pressure that leads to significant corrections. Currently, if demand does not increase, the market may repeat this trend.
In the past seven days, the price of HYPE has increased from 20.9 USD to 34.5 USD, a rise of 65%. This increase coincided with a strong upward movement in many traditional commodities like gold and silver. The Open Interest of Hyperliquid’s HIP-3 surged to 793 million USD over the two days of January 26-27, 2026, from 260 million USD a month prior. This reflects the growing demand for trading decentralized commodities and alternative market models.
Although the market is active, price trends remain difficult to predict. Around the 34.5 USD area, HYPE is testing an important zone. If the token can surpass 35.3 USD and maintain above this mark, the upward trend may continue. Technical analyses suggest that HYPE could target the 42.4 USD price range in the short term.
However, the downside risk remains quite significant if market sentiment worsens. If HYPE cannot maintain above the 30.8 USD level, a strong correction may occur. In that case, the price of HYPE could drop to around 26.8 USD if selling pressure increases. This scenario would break the bullish forecast and signal a repositioning phase in the market.
