Hyperliquid News: Bitwise Files Second Amendment For HYPE ETF, Price Retests Resistance After Weekly Rally

Key Insights:

• Hyperliquid News: Bitwise’s HYPE ETF draws closer to reality as the firm files a second amendment to its application.
• Hyperliquid (HYPE) price maintains steady weekly bullish momentum and retests the key support level.
• HIP 3 open interest retreats after clocking historic highs earlier in the week.

There’s been no shortage of positive Hyperliquid news this year, from robust adoption, to HIP3 volumes driven by tokenization. It just concluded the week with yet another positive development and this time it has to do with HYPE ETF prospects.

According to the latest HYPE news, a HYPE ETF is now closer to becoming reality than ever before. Bitwise has reportedly filed a second amendment for its HYPE ETF application.

Analysts saw this amendment as positive, Hyperliquid News. Such amendments have historically indicated that approval was approaching. If so, this means the first HYPE ETF may be about to debut.

The launch of a HYPE ETF could mark yet another important milestone for the Hyperliquid community. The cryptocurrency was one of the best-performing coins in the last few months. It was thus unsurprising that institutional investors want a piece of the proverbial pie.

Hyperliquid News: HYPE Price Approaches Relevant Resistance Level

Altcoins experienced a bit of relief from the bears in the last 7 days. HYPE was once again one of the best performers, with the Hyperliquid news showing a rally of over 15% in the last 7 days.

HYPE price jumped from as low as $34.45 on 2 April, to $42.45 at press time. More importantly, this latest rally resulted in the retest of a resistance level that has been active since November last year.

Hyperliquid News: HYPE Price Retests 6-month Resistance | Source: TradingView

The resistance retests suggests that price may face short term sell pressure in the next few days. On the other hand, it was not yet overbought hence potential for a bit more upside.

A glance at current demand and supply dynamics may offer insights into whether profit-taking will commence. Large orderbook data revealed that whales were already positioning for the downside slide on Binance and OKX futures.

Whales had roughly $15 million in short positions that were executed in the last 24 hours. The cryptocurrency had just over $2.2 million in spot inflows during the same period, hence the sustained uptrend for now.

The cryptocurrency may owe part of its upside this week to the Hyperliquid (HYPE) ETF news. This may have delayed the potential retracement, considering that there were over $4.3 million in spot outflows on Friday.

Other factors that previously drove HYPE price momentum may also come into play.

HIP3 Open Interest Cools After Hitting Historic High

HIP3 was at the core of the recent volumes of Hyperliquid. This is because it paved the way for ease creation of derivative tokenized products.

In fact, tokenized assets generated more trading volumes than crypto trading on the Hyperliquid DEX over the last few months.

Daily HIP3 open interest peaked at $2.4 billion on 7 April. It has since cooled to roughly $1.9 billion at press time.

Hyperliquid HIP3 DEXs by Open Interest | Source: Artemis

Cooling open interest may signal that derivatives activity was on the decline. It was one of the key drivers of the momentum, but declining open interest suggests that demand for Hyperliquid crypto might be negatively affected.

It is unclear how long the excitement for the upcoming HYPE ETF will last. However, two major scenarios could play out.

Demand may prevail, allowing HYPE price to extend its rally. Alternatively, market conditions may remain bleak, in which case short-term profit-taking will pave the way for a retracement.

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