- A whale shorted HYPE near key resistance as Hyperliquid captured 70 percent of the on-chain perps market with record-breaking volume.
- HYPE surged 42 percent in three weeks but signs of slowing momentum and consolidation are making traders cautious about fresh long entries.
- Hyperliquid’s rise reflects a broader DeFi shift as traders prefer non-custodial perpetual futures for better transparency and custody control.
According to Spot On Chain, a recent whale move has sparked attention in the decentralized derivatives market, as a trader deposited $5.1 million USDC into Hyperliquid and opened short positions worth over $1.71 million in HYPE. The orders targeted the $18.5 to $18.9 range, signaling a bearish outlook near recent highs. This development arrives as HYPE consolidates following an explosive rally and Hyperliquid continues to dominate the on-chain perpetual futures.
Hyperliquid’s rise has reshaped the decentralized perps landscape. The protocol now commands 70% of the total on-chain perpetual futures market share. It processed $175 billion in March and already surpassed $83 billion in April. According to DeFiLlama, Hyperliquid handled $4.765 billion in 24-hour volume—more than six times that of runner-up Jupiter. This sharp rise highlights the growing shift from centralized to decentralized platforms offering greater transparency and custody control.
Price Rallies but Momentum Slows
HYPE has surged over the past three weeks, climbing from $12,500 to above $17,800. This 42% gain reflects strong bullish momentum, especially between April 15–18 when the price jumped 20% in just three days. The 4-hour chart reveals key support zones at $13,100, $14,645, and $16,315. Resistance sits near $18,500, aligning with the whale’s short entries.
However, HYPE’s upward drive shows early signs of exhaustion. Price action now moves within a tight $17,770–$17,812 range. Analysts note reduced volatility and a lack of solid base formation. Some traders remain cautious, waiting for a clearer setup before taking long positions.
On-Chain Perps Gain Investor Trust
Besides technicals, Hyperliquid’s rise also points to wider DeFi trends. Traders favor on-chain perps due to non-custodial design and improved risk transparency. Perpetual contracts allow leveraged exposure without expiration, appealing to sophisticated participants.
Moreover, decentralized smart contracts execute trades automatically. This reduces reliance on centralized intermediaries that often collapse under pressure. Consequently, Hyperliquid continues to attract high-volume traders even as competitors struggle to match its liquidity and execution speed.
