Hyperliquid price forecast: HYPE holds above $40 as leverage builds

TL;DR

• Hyperliquid (HYPE) holds near $42 with a bullish structure above $40.
• The bullish structure is supported by rising futures Open Interest and positive funding rates. 

Hyperliquid (HYPE) trades above $42 on Monday, sustaining its upward trajectory from an ascending trendline. 

While the broader trend remains constructive, signs of cooling retail interest contrast with a steady buildup in leveraged positions, creating a mixed near-term outlook for the decentralized exchange token.

Retail momentum fades as social dominance drops

Retail-driven momentum appears to be weakening. Data from Santiment shows Hyperliquid’s social dominance has declined sharply to 0.137%, down from 0.688% at the height of the US-Iran conflict in late March. 

The drop suggests reduced retail attention as geopolitical tensions ease, removing a key narrative driver that previously fueled speculative interest in the DEX.

In contrast, derivatives activity is heating up. According to CoinGlass, HY...