HyperLiquid TVL explodes – Can HYPE use this to defy the $44 wall again?

• HyperLiquid’s TVL jumped 337% YTD, but Futures Open Interest dropped 5.76%, hinting at lowered leverage exposure.
• Spot volume showed “Overheating,” flagging short-term exhaustion amid rising retail and bot participation.

A crypto whale deposited $8.7 million in USDC to HyperLiquid [HYPE] on the 13th of June, buying 77,353 HYPE for $3 million at $38.68.

They also staked 799,698 HYPE worth $30.77 million, bringing their total exposure above $33 million.

Naturally, this kind of allocation speaks volumes.

The timing? Right as HYPE retested its ascending trendline after being rejected at $44.10.

Despite the 5.54% intraday decline at press time, the whale’s aggressive commitment suggests that deeper market participants remain unfazed by the short-term dip.

What’s behind HYPE’s rise?

HyperLiquid EVM has seen explosive adoption, with its Total Value Locked (TVL) soaring from $400M to $1.7B since the beginning of 2025—a 337% year-to-date increase. 

This surge stems from ecosystem primitives like auctions, builder codes, and Hypercore composability. As more protocols tap into these finance primitives, demand for HYPE has intensified. 

While price briefly dipped, the expanding utility and liquidity of the HyperLiquid stack continue to support bullish fundamentals, making the recent whale accumulation even more relevant in the broader on-chain context.

Source: Hyperliquid

However, Open Interest has declined 5.76% to $1.78B even as HyperLiquid’s ecosystem continues to grow and HYPE draws whale interest. 

This suggests that traders are reducing leverage exposure, either locking in profits or bracing for increased volatility. 

Lower Open Interest typically reduces market instability, but it may also signal fading speculative appetite.

Source: CoinGlass

Can HYPE defend its trendline after losing steam at $44?

After rallying since April, HYPE’s bullish momentum stalled at the $44.10 resistance zone. The altcoin trades just above the key ascending trendline, currently aligning with the $37–$38 region. 

This area could act as support in the short term, as Parabolic SAR dots still print below price, indicating the trend remains intact. However, any daily close below this dynamic support may invalidate the rally structure. 

Bulls must now defend this zone decisively to sustain the multi-month uptrend and potentially retest the recent highs.

Is overheating volume a sign of rising euphoria or exhaustion?

According to the Bubble Map, HYPE’s spot volume is in “Overheating” territory. Of course, high volume confirms strong participation—but when it spikes too fast, it often signals exhaustion.

The takeaway?

This pullback could be a healthy pause—if HYPE consolidates above trendline support. If not, the overheated setup may invite sharper reversals, especially alongside falling Open Interest.

Source: CryptoQuant

Could liquidation clusters above $44 trigger a bullish breakout?

The Liquidation Heatmap showed dense short positions clustered above the $44.10 resistance zone, hinting at a potential squeeze setup. 

If bulls reclaim this level with strong volume, cascading liquidations could trigger an explosive move higher. 

However, the current structure demands a strong push through overhead supply to activate these short traps. 

Therefore, traders are watching closely for any sustained breakout above $44, which could force short positions to unwind and provide the fuel for HYPE’s next leg up.

Source: CoinGlass

What can reignite HYPE’s rally

HYPE’s pullback from $44 comes amid a broader cooling in derivatives, yet strong fundamentals and whale confidence persist.

The 337% surge in HyperLiquid’s TVL and $33M whale exposure underline strong long-term conviction. 

While technical indicators suggest potential support at current levels, traders must watch for renewed volume and a move above $44 to confirm a breakout. 

If that occurs, the combination of short liquidations and rising ecosystem traction could be the catalyst HYPE needs to extend its uptrend.