Hyperliquid Faces Growing Pressure as Bitwise Files ETF While Competition Intensifies
Hyperliquid (HYPE) is at a crossroads because more and more institutions are using it, but it is also facing more and more competition from
Quick overview
- Hyperliquid (HYPE) is gaining institutional interest with a Bitwise ETF filing but faces increasing competition from ASTER, a rival DEX.
- HYPE's price has been consolidating around $41-$42, with technical indicators suggesting a potential drop to the $35-$32 support zone.
- ASTER's trading volume has surged to $35.8 billion, overshadowing Hyperliquid's $10 billion, indicating a shift in market preference.
- For HYPE to regain bullish momentum, it must break above the $45 level and improve trading volume and market share.
Hyperliquid (HYPE) is at a crossroads because more and more institutions are using it, but it is also facing more and more competition from other perpetual futures platforms. The coin has been trading fairly steadily over $42 in recent sessions, but it confronts a lot of challenges that could affect its path in the next several weeks.
Bitwise ETF Filing Signals Growing Institutional Recognition
Bitwise, an asset management, has filed paperwork with the SEC to start the first exchange-traded fund that tracks Hyperliquid’s native token. This is a big step forward for the decentralized perpetual futures field. The Bitwise Hyperliquid ETF would directly hold HYPE coins, giving investors regulated access to the Layer 1 blockchain that was intended just for DeFi apps.
The ETF application is a big step forward for Hyperliquid since it puts it in the same category as a small number of cryptocurrencies that are considered good investments for institutions. The proposed fund would have in-kind creation and redemption methods, just like the Bitcoin and Ethereum ETFs that have been successful in the past several years. This structure makes trading easier and could cut expenses for investors.
Bitwise’s application said, “there are currently no Hyperliquid futures contracts registered with the CFTC,” which might make the SEC’s examination timetable more complicated.
HYPE/USD Technical Breakdown Points to Deeper Correction Ahead
From a technical point of view, bulls should be worried about HYPE’s price action. After being turned down above $60, the token’s price dropped sharply, creating a succession of lower highs that show momentum is waning. The recent consolidation around $41–$42 is a key support zone that could decide where the token goes in the near future.
Chart analysis shows a broken rising wedge formation, which is usually a sign of bearish continuation developments. If the current support doesn’t hold, technical estimates say that the price could drop to the $35-$32 level, which is a major demand zone with historical significance. This level could be a key support level for any serious recovery attempt.
The way the market has been breaking down shows that there has been more selling pressure with each bounce attempt. This means that the market mood has turned more pessimistic in the short term. A clear breach over $45 would need to happen for bulls to take back control and end the present bearish pattern.
Hyperliquid’s Market Share Erosion as Aster Emerges as Formidable Competitor
The technical breakdown may not be as bad as the big change that is happening in the perpetual futures market. ASTER, a competing DEX that runs on the BNB Chain BNB/USD, has become a real challenge to Hyperliquid’s dominance. Its trade volumes are more than three times what Hyperliquid’s were recently.
Recent data suggests that ASTER’s trading volume over the past 24 hours has skyrocketed to almost $35.8 billion, which is much higher than Hyperliquid’s $10 billion over the same period. Just a few days ago, Hyperliquid was comfortably in the lead in the market with $16 billion in daily volume, while ASTER had almost no presence. This sudden change is a complete turnaround.
Open interest measurements show that there is even more competition. ASTER’s outstanding contracts are worth $1.15 billion, while Hyperliquid’s open interest has dropped 1.85% to $2.2 billion. This change in liquidity shows that traders are starting to choose ASTER’s platform more and more. This could be because of its newer token economics or better trading infrastructure.
Hyperliquid Price Prediction: Cautious Outlook with Support at $35-$32
HYPE is going to have a hard time in the near future, according to both technical and fundamental analysis. The market activity right now signals that prices will keep going down, and the $41-$42 support zone is the last line of defense for bulls in the short run.
If this level doesn’t hold, it looks quite likely that the price will drop to $35–$32, which is around 15–20% lower than where it is now. This location would probably draw a lot of buyers because it is both a technical support level and a place where value-oriented investors might step in.
For a positive reversal to happen, HYPE would have to convincingly recapture the $45 level and show that it is getting stronger in both trading volume and market share. For now, the easiest way to go seems to be down, and traders should keep an eye on the important $35 support zone for signals that things are settling down.
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