Hyperliquid continues its attempt to consolidate recent gains, extending its bounce above the $60 mark on Monday for a third consecutive session. However, the crypto asset faces a conflicting blend of market forces. While broader cryptocurrency sentiment has received a boost from reduced geopolitical risks following a pause in US-Iran missile strikes and active peace mediation in Oman, asset-specific headwind from persistent institutional ETF redemptions continues to cap its upward momentum.
Institutional Outflows Signal Easing Demand
The primary drag on Hyperliquid’s price action stems from a visible slowdown in institutional appetite. Institutional flow metrics from SoSoValue reveal that HYPE-focused ETF products recorded $8.61 million in net outflows last week. This follows a substantial $7.26 million withdrawal registered in the preceding week, bringing total two-week outflows past $15 million. Sustained capital flight from spot ETF vehicles typically creates persistent selling pressure on underlying spot prices and undermines overall retail confidence.
Derivatives Metrics Reflect Retail Caution
Retail participation in Hyperliquid remains similarly indecisive. Market intelligence from CoinGlass shows that HYPE futures Open Interest (OI) has held flat near $2.47 billion over the past 24 hours. This steady open interest indicates that derivatives traders are keeping their existing positions intact while adopting a wait-and-see stance before committing new capital. Furthermore, the long-to-short ratio sits at 1.04, reflecting a near-equal distribution between bullish and bearish open contracts.
A noticeable contraction in the funding rate further underlines cooling speculative fervor. The funding rate has slid to 0.0038% from 0.0073% recorded a day prior. This sharp decrease in funding costs indicates that long position holders are becoming less willing to pay a premium, signaling a temporary moderation in short-term bullish sentiment.
Technical Indicators and Key Support Zones
At press time on Monday, HYPE is changing hands near $60.00. From a technical chart perspective, the token trades below its 50-day Exponential Moving Average (EMA) positioned at $61.92, while remaining safely above its major 200-day EMA located around $50.78. This configuration suggests that while the broader long-term market structure remains constructive, near-term price action stays biased toward consolidation or mild downside weakness.
Momentum indicators confirm that buyers currently lack aggressive breakout strength. The Relative Strength Index (RSI) hovers around 44, remaining below the neutral 50 threshold to signal subdued buying momentum. Similarly, the Moving Average Convergence Divergence (MACD) line trades below its signal line in negative territory. However, the histogram lines are contracting toward zero, hinting at the early stages of a potential bullish crossover if buying volume returns.
Should selling pressure intensify, initial downside support sits at the 50% Fibonacci retracement level of $57.55. A breakdown below this immediate floor would shift focus toward the 200-day EMA near $50.78, a major support region where long-term buyers are expected to re-emerge with stronger conviction.
Broader Market Performance and Altcoin Trends
In contrast to Hyperliquid's tight rangebound trading, major benchmark assets have kicked off the new week on stable ground. Bitcoin, Ethereum, and Ripple recorded solid gains of over 1%, 4%, and 1% respectively last week. Bitcoin is successfully defending key technical floors above $65,000, trading near $65,379 according to live session data. Meanwhile, top Decentralized Finance (DeFi) tokens including Aave and Ondo have emerged among the strongest performers over the last 24 hours.
On the flip side, Cardano (ADA) remains under noticeable pressure, slipping lower to $0.165 on Monday following last week's modest losses. Weakening metrics across ADA derivatives point toward limited immediate upside potential. Overall, while macroeconomic and geopolitical relief provides a supportive backdrop for major digital assets, Hyperliquid will require a reversal in ETF capital flows to unlock a decisive breakout above its immediate moving average resistance.
