- Two whales were battling over the next move for the HYPE token, each setting different targets for the asset’s direction.
- Retail derivative traders might decide HYPE’s next direction in the market.
Hyperliquid [HYPE] has slightly paused its rapid price growth over the past 24 hours, recording a small increase of 0.25% after hitting a 13.31% monthly high.
Analysts suggest that retail derivative traders may have influenced this drop. However, this group could still impact HYPE’s next move as the whale standoff continues.
Whales take opposing views on HYPE
A review of the Hyperliquid Whale Tracker on Coinglass shows that two whales have taken opposite positions on HYPE; one betting on a price increase, the other expecting a drop.
The long trader, anticipating a rally, opened a $15.54 million position at $11.93. The position currently holds a 34.59% profit with a liquidation price at $3.25, while the market trades at $18.
On the other hand, the short trader holds a $12.80 million position opened at $14.209. The position is down 22.13%, with a liquidation price of $25.95.
Source: Coinglass
However, the profit on the long position doesn’t confirm that the market will move in its favor, nor does the loss on the short position guarantee its failure.
To assess where the market might move, AMBCrypto examined the activity of retail derivative traders on HYPE, specifically, whether they’re buying or selling, as they could play a decisive role.
Retail traders bet against the short
Most retail derivative traders are betting on a rally and have opened long positions, aligning with bullish market sentiment.
Market volume has surged over the past 24 hours, accompanied by a slight price increase. At press time, market volume was up by 5.73%, surging to $274.91 million, signaling growing buying momentum.
The Volume-Weighted Funding Rate has remained in positive territory since the 20th of April, suggesting most positions in the market are from traders expecting a rise in HYPE’s value.
Source: Coinglass
This metric combines derivative market volume with funding rate data to determine whether positions are bullish or bearish.
A positive reading, like HYPE’s current rate, indicates bullish sentiment among traders.
Similarly, Open Interest remains positive, reaching its February 22 high, when market positions surpassed $560 million, mainly from long traders.
Additional indicators confirm that derivative traders continue to align with the market’s bullish trend.
More bullish sentiment surfaces for HYPE
Over the past 24 hours, retail derivative traders betting against a bullish move for HYPE have lost $47,790 as the market gained momentum. These losses could grow as pressure mounts on short traders.
A closer look at 12-hour liquidation data shows that of the $42,760 in forced liquidations, short traders lost $37,230 compared to $5,530 for long traders. This sharp contrast favors bullish traders.
Source: Coinglass
Finally, the Funding Rate shows long traders are paying a premium fee to short traders, with a current rate of 0.0099%.
In this scenario, the market favors long traders who are trying to prevent a large gap between spot and futures prices. A higher funding rate could further support HYPE’s bullish trend.
In summary, the derivative market traders are betting on a HYPE rally. If momentum among this group keeps rising, the whale betting on a price drop may face liquidation.