• Hyperliquid’s robust fundamentals could set the stage for a renewed bullish impulse. 
• The on-chain order flow and OI expansion could be early indicators of a potential trend reversal.

When discussing success stories in crypto, Hyperliquid [HYPE] frequently emerges as a prime example. 

Over the past three months, the platform has averaged $6.4 billion in daily trading volume. In fact, positioning it above 50% of Bybit and OKX’s volumes. 

Despite this, HYPE currently trades -54% below its cycle peak of $35.

According to AMBCrypto, this anomaly suggests the token’s pullback is likely a byproduct of macro-driven liquidity compression, rather than any protocol-level deterioration.

Could this position Hyperliquid to capture greater market share if risk-on sentiment returns to the broader crypto ecosystem?

Volume profile supports further expansion

HYPE is currently consolidating around the $16.30 level. It is a key inflection zone that served as a distribution ceiling in the March cycle, leading to a rapid 40% retracement to sub-$10 levels within two weeks. 

However, unlike the prior rejection, the current volume profile shows no signs of climaxing activity or distributional divergence. 

In fact, Hyperliquid continues to post robust throughput, averaging $6.4 billion in daily volume. 

As of press time, Bitcoin’s OI [Open Interest] on Hyperliquid was $1.4 billion, which is 15% of Binance’s $9.2 billion, 46% of OKX’s $3 billion, and 25% of Bybit’s $5.6 billion.

To put that into perspective, Jupiter Perps — Hyperliquid’s closest competitor — averaged $704 million in daily trading volume, 88% lower than Hyperliquid.

The chart above is a testament to HYPE’s growing market penetration in the perp DEX landscape. 

Over a condensed timeframe, Hyperliquid has cemented itself as a critical player, exhibiting strong utilization across various liquidity and trading metrics. 

Given its current price action, HYPE may be undervalued relative to its emerging dominance in the space, signaling potential for substantial upside in 2025.

Hyperliquid crypto: What’s next amid market repricing?

As highlighted earlier, HYPE’s current price action mirrors its late-March cycle, when bullish indicators were present, yet a corrective pullback remains a viable scenario.

The potential for this pullback is rooted in psychological factors, as traders may anticipate a repeat of the sharp 40% retracement. 

This sentiment-driven caution could induce a local top, with market participants engaging in profit-taking or hedging strategies, which could trigger a brief consolidation phase.

To counteract this resistance, the volume profile must maintain upward momentum, indicating sustained buy-side absorption.

 If this trend persists, another short squeeze could trigger an aggressive move to the upside, breaking through the resistance zone. 

This price action could spark FOMO, accelerating buying pressure and pushing HYPE to reclaim the $20 resistance level.