With global markets closed over the weekend, geopolitical-driven demand for tokenized commodities flooded Hyperliquid.
HYPE has surged 23% over the past week, with technical indicators pointing to continued upside momentum before the rally overextends.
Futures open interest climbed 5% between March 1 and 3, while funding rates remained significantly positive, confirming that leveraged traders are actively betting on HYPE’s push higher.
While the broader cryptocurrency market grapples with a “sideways” trend, Hyperliquid’s native token, HYPE, has emerged as a clear outlier.
As top assets like Bitcoin (BTC) and Ethereum (ETH) struggle to maintain upward momentum following a weekend of geopolitical conflict, HYPE is posting significant gains, driven by a massive uptick in trading volume on the decentralized exchange (DEX).
Can it maintain its current course?
When Global Markets Closed, Investors Turned to Hyperliquid
As news of a US-Israel joint operation against Iran broke over the weekend, investors targeted “risk-off” assets, driving a surge in demand for crude oil, gold, and silver.
However, with global markets closed, the capital that would ordinarily have flowed into commodity markets instead found its way to Hyperliquid, as market participants settled for the tokenized versions of these assets on the DEX.
As a result, user activity on the platform has rocketed over the past week. According to Artemis, the DEX’s daily active user count is up 19.1% over the last seven days.
The spike was particularly sharp between March 1 and March 2, with daily transactions climbing from approximately 350,000 to nearly 450,000.
This 22% single-day jump in transaction count highlights how capital and activity have flowed into the DEX amid escalating geopolitical tensions.
HYPE Is Up 23% in Seven Days — Technical Indicators Suggest the Rally Is Not Over
The surge in trading volume for tokenized commodities on HyperLiquid has directly impacted HYPE’s price, pushing it up 23% over the last seven days.
As of this writing, the altcoin trades at $32.91, with technical indicators suggesting sustained near-term growth.
HYPE’s Relative Strength Index on a 24-hour chart supports this bullish outlook. As of this writing, this momentum indicator is at 59.09 and is in an uptrend.
The RSI indicator measures an asset’s overbought and oversold market conditions. It ranges between 0 and 100.
Values above 70 suggest the asset is overbought and due for a price decline, while values below 30 indicate the asset is oversold and may witness a rebound.
At 59.09, HYPE’s RSI signals that its price has room to run before entering overbought territory.
Furthermore, at its current price, the altcoin trades above the Leading Spans A and B of its Ichimoku Cloud, reflecting the bullish sentiment among HYPE holders.
As of this writing, these lines form dynamic support levels below HYPE’s price at $29.702 and $29.454, respectively.
The Ichimoku Cloud tracks an asset’s market momentum and identifies potential support/resistance levels.
When an asset trades above this cloud, the market is in an uptrend. In this scenario, the cloud acts as a dynamic support zone, strengthening the likelihood of continued upward movement as long as the price remains above it.
Futures Traders Are Betting Big on HYPE
A look at the token’s derivatives market shows strong buy-side demand from its futures traders. This is reflected by its futures open interest, which climbed by 5% between March 1 and 3.
Hyperliquid Futures Open Interest | Credit: Coinglass
An asset’s open interest measures its total number of outstanding futures or options contracts that have not been settled.
When an asset’s price and open interest climb, as with HYPE, it signals that new money is actively entering the market in support of the uptrend.
This trend signals that fresh capital is being deployed and on the long side, suggesting that futures traders are increasingly confident in the rally’s continuation.
Per Coinglass, HYPE’s funding rate has remained significantly positive since March 1, indicating a huge demand for long positions.
On the other hand, if holders resume profit-taking, HYPE could shed its recent gains, fall below support at $31.82, and target $27.48.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Abiodun Oladokun is a Research Analyst at CCN, where he covers cryptocurrency markets with a focus on on-chain analysis, technical assessments, and emerging trends across decentralized finance (DeFi), real-world assets (RWA), artificial intelligence (AI), decentralized physical infrastructure networks (DePIN), Layer 2s, and meme coins.
Prior to CCN, he served as a Senior On-Chain Analyst at BeInCrypto, producing market reports spanning diverse crypto sectors.
Before that, he conducted technical analysis and market assessments of various altcoins at AMBCrypto, where he also contributed long-form quarterly research papers on DeFi, NFTs, DAOs, and scaling architectures, leveraging on-chain platforms including Messari, Santiment, DefiLlama, and Dune Analytics.
He began his crypto career as a research analyst at SixthSense DAO, developing blockchain forensic tools to trace the history of stolen assets.
Abiodun is a lawyer called to the Nigerian Bar and the founder of Ilé Ijó, a Lagos-based electronic dance music collective.
