Hyperliquid (HYPE) has recorded the strongest weekly rise in the past few months. It surged by 65%, nearing a peak of $34.5 after about two months. Following a period of consolidation in recent weeks, a rapid rise has sparked renewed interest among derivative-focused traders.
The upward trend is noticeable, but current metrics suggest uncertainty. Investors are questioning whether HYPE will continue to rise or if a correction is imminent.
High-interest traders, pouring in funds
Market sentiment surrounding hyperliquid assets has significantly strengthened as derivatives trading accelerates. Open interest surged by 43% within 48 hours, rising from $1.21 billion to $1.73 billion. Such a rapid increase indicates a significant rise in new position entries rather than short liquidations. This movement typically reflects traders' confidence in further price increases.
The funding rate has maintained a positive flow throughout the rally. This indicates that long positions are favored over shorts. If the funding rate remains positive while open interest increases, it signifies that traders are willing to pay a premium to maintain bullish positions.
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This structure supports additional upward movement in the short term. However, if market sentiment changes abruptly, the risk of forced liquidation may also increase.
From a macro perspective, the measured indicators are sending warning signals. Over the past few days, the relative strength index (RSI) of HYPE has surpassed 70.0, entering overbought territory. This suggests that buying pressure has reached its limits following a sharp increase.
Historically, in similar RSI situations, hyperliquid assets have experienced downward corrections. When buying pressure reaches saturation, early investors tend to realize profits. This can lead to increased selling pressure, causing the market to adjust rapidly. If current conditions do not expand additional demand, a similar pattern may follow.
Over the past 7 days, the price of HYPE rose from $20.9 to $34.5, recording a 65% increase. This rally coincided with a bullish trend in traditional commodity markets such as gold and silver. The hyperliquid HIP-3 open interest surged to $793 million on January 26-27, 2026, a significant increase from $260 million a month ago. This growth trend indicates an increasing demand for decentralized commodity trading and new market structures.
Despite a strong background, the price direction remains uncertain. HYPE, trading near $34.5, is testing a crucial inflection point. If the token can convert $35.3 into a support level, the bullish trend could continue. In that case, a further rise to $42.4 is expected in the short term.
Conversely, if market sentiment weakens, the risk of decline is high. If it fails to defend above $30.8, a larger correction may occur. In such a case, HYPE could fall to $26.8. This movement would invalidate the bullish scenario and signify a reset of market positioning.