Bitcoin (BTC), Ether (ETH), and XRP are all trading in the red after the cryptocurrency market recorded a bearish weekend.
HYPE, the native token of the Hyperliquid DEX, is the worst performer among the top 20 cryptocurrencies by market cap.
HYPE is down 7% in the last 24 hours and now trades at $27.7.
It has retested the $27.4 support level and could experience a temporary rally in the near term.
The bearish performance extends HYPE’s losses for the third consecutive week since early February.
The falling Open Interest (OI), rising short bets, and negative funding rates all contribute to HYPE’s poor performance.
Derivatives data back HYPE’s latest dip
Hyperliquid is the worst performer in the top 20, and its performance is backed by derivatives data in the market.
CoinGlass data shows that Hyperliquid futures Open Interest (OI) at the Binance exchange fell to $146.15 million on Monday.
The OI has been declining since the end of January and is nearing the January 21 level of $135 million.
The decline in OI suggests waning investor participation and projects a bearish outlook.
Hyperliquid’s long-to-short ratio also stands at 0.76, the lowest level in 30 days.
The ratio declining below one reflects bearish sentiment in the market, as more traders are betting on the asset’s price to fall.
Furthermore, Coinglass’s OI-Weighted Funding Rate data shows a negative outlook.
The metric flipped negative earlier today and now reads -0.032%, nearing the October 16 levels, when HYPE dropped sharply.
In addition to the bearish sentiment from the derivatives markets, the market is cautious about the growing tariff concerns.
During the weekend, US President Donald Trump said that he would increase global tariffs to 15% from 10%.
The increase in tariffs came a day after the Supreme Court struck down a broad swath of the president’s trade agenda.
Trump pointed out that the new tariffs will be “effective immediately,” adding that additional levies would follow.
Hyperliquid price forecast: HYPE eyes temporary pump
The HYPE/USD 4-hour chart is bearish after Hyperliquid’s price was rejected from the previously broken 100-day Exponential Moving Average (EMA) at $30.55 on Saturday.
It has since lost nearly 8% of its value since then.
If the daily candle closes below the weekly support of $26.85, HYPE could extend its decline toward the next daily support at $23.91.
The Relative Strength Index (RSI) on the 4-hour chart is 45, below the neutral level of 50, pointing downward, indicating bearish momentum gaining traction.
Also, the Moving Average Convergence Divergence (MACD) showed a bearish crossover two weeks ago, which remains intact, further supporting the negative outlook.
If the bulls hold the $27.4 support level, HYPE could rally towards the next major resistance at $30.55.
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