Hyperliquid [HYPE] has slightly paused its rapid price growth over the past 24 hours

Hyperliquid [HYPE] has slightly paused its rapid price growth over the past 24 hours, recording a small increase of 0.25% after hitting a 13.31% monthly high.

Hyperliquid [HYPE] price saw a small pause in its rapid gains over the past 24 hours, reporting a 0.25% increase. Analysts suggest that retail derivative traders may have influenced this drop. However, this group could still impact HYPE’s next move as the whale standoff continues.

Whales hold opposing views on HYPE

A glance at the Hyperliquid Whale Tracker on Coinglass reveals two whales betting on opposite outcomes for HYPE- one anticipating a price increase, the other expecting a drop.

The long trader, expecting a rally, opened a $15.54 million position at $11.93. The position currently holds a 34.59% profit with a liquidation price at $3.25, while the market trades at $18.

Conversely, the short trader holds a $12.80 million position opened at $14.209. The position is down 22.13%, with a liquidation price of $25.95.

.

However, the profit on the long position doesn’t necessarily mean the market will move in its favor, nor does the loss on the short position guarantee its failure.

To assess where the market might move, AMBCrypto examined the activity of retail derivative traders on HYPE- specifically, whether they’re buying or selling, as they could play a decisive role.

Retail traders bet against the short

Most retail derivative traders are betting on a rally and have opened long positions, aligning with bullish market sentiment.

Market volume has surged over the past 24 hours, accompanied by a slight price increase. At press time, market volume was up by 5.73%, surging to $274.91 million, signaling growing buying momentum.

The Volume-Weighted Funding Rate has remained in positive territory since the 20th of April, suggesting most positions in the market are from traders expecting a rise in HYPE’s value.

This metric combines derivative market volume with funding rate data to determine whether positions are bullish or bearish.

A positive reading, like HYPE’s current rate, indicates bullish sentiment among traders.

Similarly, Open Interest remains positive, reaching its February 22 high, when market positions surpassed $560 million, mainly from long traders.

Additional indicators confirm that derivative traders continue to align with the market’s bullish trend.

More bullish sentiment surfaces for HYPE

Over the past 24 hours, retail derivative traders betting against a bullish move for HYPE have seen $47,790 in losses as the market gained momentum. These losses could increase further as pressure mounts on short traders.

A closer look at 12-hour liquidation data shows that out of the $42,760 in forced liquidations, short traders faced losses of $37,230 compared to $5,530 for long traders. This disparity strongly favors bullish traders.

Finally, the Funding Rate shows long traders paying a premium fee to short traders, currently at 0.0099%.

In this case, the market favors long traders who are trying to prevent a large gap between spot and futures prices. A higher funding rate could further support HYPE’s bullish trend.

In essence, the derivative market traders are betting on a rally for HYPE. If momentum among this group keeps increasing, the whale who opened a short position may face liquidation.