The demand for Hyperliquid has skyrocketed in 2 groups – What will happen next with HYPE?

In the past week, Hyperliquid (HYPE) has recorded impressive performance on the price chart. After holding support at $33, this altcoin has risen to the sky and established a new all-time high (ATH) at $43.9 just three days ago.

With the upward trend lasting for two months, Hyperliquid is increasingly attracting the attention of whales, large organizations, and retail investors. As a result, many large organizations are now viewing HYPE as one of the next potential altcoins.

Large organizations pour money into Hyperliquid

Amidst the rising demand, major institutions are actively accumulating. In the past 24 hours, two large purchases have been recorded.

First, the company Tony G Co-Investment Holdings Ltd based in Canada has completed a significant HYPE purchase. Specifically, the company purchased 10,387 HYPE tokens with a total value of 438,828 dollars, at an average price of 42.24 dollars per token. This is part of the company's long-term strategy for digital assets, marking an important step in its approach to the DeFi sector.

Not only Tony G, another major organization has also made a noteworthy deal. According to data from Onchain Lens, a whale purchased 715,917 HYPE tokens worth a total of 29.47 million dollars, at an average price of 41.16 dollars.

When institutions and whales enter the accumulation phase, it reflects strong confidence in the asset. Therefore, these moves can encourage many other investors, especially retail investors, to open positions, thereby creating strong demand in the market.

The frequency of spot trading by retail investors | Source: CryptoQuantHowever, although whales and large institutions are actively buying, retail investors are not participating as strongly. Notably, the frequency index of retail investor spot trading for Hyperliquid has decreased over the past four days.

Although spot trading activity is weakening, the market still records the number of retail investors at a neutral level. This indicates that the retail investor group is currently participating in the spot market cautiously, neither too actively nor too passively.

!()https://img.gateio.im/social/moments-c9bb6bb637f1760b1ef0b066b0d08a80[hype]Frequency of futures trading by retail investors | Source: CryptoQuantAlthough retail investors are not very active in the spot market, they are extremely active in the futures market, according to Hyperliquid's Retail Investor Activity in the futures market.

This shows that retail investors are actively betting on HYPE, anticipating the next movements of this altcoin. They tend to be optimistic and are buying in to open Long positions, expecting the price to continue to rise.

What is waiting for HYPE?

Strong buying chains from large institutions have had a positive impact on Hyperliquid's price movements. At the time of writing, HYPE is trading at $39.97, up 14.3% over the past 7 days. This rally extends from an uptrend throughout the past month, with a 50% increase in 30 days. These numbers illustrate a very strong bullish momentum.

However, the upward momentum is showing signs of weakening. The Stoch RSI indicator has shown a bearish crossover in the past day, indicating a bearish signal as HYPE enters the overbought territory. In fact, the price has decreased by nearly 4% in the past 24 hours.

Source: Trading ViewA bearish crossover in overbought conditions indicates a high likelihood of strong volatility, which may lead to a decline in HYPE. The Directional Movement Index (DMI) further reinforces the signal that the upward momentum is weakening.

Currently, the +DI line is at 25, lower than the -DI which is holding around the 40 mark — this indicates that the bearish pressure is increasing, while buying strength is weakening. When the DMI has such a configuration, it often signals the possibility of a price correction downward.

In summary, if the buying momentum from whales and large institutions continues to be maintained, Hyperliquid's upward trend may still hold and aim for the $44 mark.

On the contrary, if the activity from retail investors continues to decrease while the momentum indicators remain weak, HYPE is likely to adjust to the $38.5 range before accumulating strength to bounce back in the next upward wave.

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