Individual Investor Buying Plummets… Is Hyperliquid (HYPE)'s Uptrend Breaking?

▲ Hyperliquid (HYPE)/AI-generated image ©

Hyperliquid (HYPE) has fallen below $70 as individual investor buying interest rapidly weakened despite institutional fund inflows. While decreasing open interest and large-scale long position liquidations are increasing short-term correction pressure, institutional investment demand is reportedly being steadily maintained.

According to investment media FXStreet on July 8 (local time), Hyperliquid continued its decline this week, trading below $70. As risk-off sentiment spread across the broader cryptocurrency market, individual investor buying weakened, while the HYPE spot ETF saw a net inflow of $4.32 million on the 8th. This marks the second consecutive day of inflows, following $8.43 million recorded the previous day, indicating that institutional investment demand remains robust, the media reported.

Individual investor sentiment also showed weakness in the derivatives market. According to CoinGlass data, HYPE futures open interest decreased by over 2% in the last 24 hours, reaching $2.79 billion. This suggests that investors are reducing leverage or closing positions. During the same period, a total of $7.18 million in liquidations occurred, with $6.31 million attributed to long position liquidations, confirming a sell-side dominance. However, the funding rate remained in a positive range of 0.0078%, indicating that some investors still anticipate a rebound.

The diverging movements of institutional and individual investors also drew attention. According to SoSoValue data, the HYPE spot ETF recorded net inflows of $8.43 million on the 7th and $4.32 million on the 8th. The media explained that while institutional funds are steadily flowing in, the weakening investment sentiment among individual investors could lead to short-term bearishness, but it also suggests long-term upside potential.

Technically, the possibility of a short-term correction was also raised. HYPE is trading above both its 50-day Exponential Moving Average (EMA) of $62.36 and its 200-day EMA of $48.40, maintaining a medium-to-long-term uptrend. However, it has declined for three consecutive trading days this week, being capped by resistance near $72.75. The media suggested that if the current correction continues, there is a possibility of further decline to around $64.75, where the uptrend line is located, and $62.36, the 50-day EMA. The Moving Average Convergence Divergence (MACD) still maintains a positive trend, and the Relative Strength Index (RSI) at 54 indicates that the moderate upward momentum is somewhat weakening towards the neutral zone. Conversely, if the $72.73 resistance level is broken on a daily closing basis, $77.09 and $89.14 are presented as the next target zones.

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