HYPE Price Flashes a Risky Pattern as Polymarket Moves to Launch Hyperliquid Rival

Key Insights

• HYPE price formed a rising wedge pattern, signaling a potential bearish breakdown.
• Polymarket plans to launch perpetual futures, increasing competition with Hyperliquid.
• Futures open interest dropped from $1.93 billion to $1.63 billion, indicating weakening demand.

HYPE price pulled back this week as traders reacted to technical weakness and rising competition risks. The token fell from a year-to-date high of $46 to around $40 as of April 22, 2026, reflecting reduced momentum after a strong rally.

The decline coincided with plans by Polymarket to enter the perpetual futures market, a segment currently dominated by Hyperliquid. At the same time, derivatives data and chart structures suggested that buying pressure was fading, raising the likelihood of a near-term correction.

Polymarket Plans to Launch a Hyperliquid Rival

Hyperliquid has become one of the biggest players in the crypto industry, where it is handling billions of dollars in perpetual futures each day.

Data compiled by DeFi Llama shows that its volume in the last 30 days jumped to over $193 billion. This amount is much higher than other popular perpetual futures trading platforms in the industry, including the likes of Aster, edgeX, Grvt, and Lighter, combined.

Hyperliquid is also handling more transactions than all DEX protocols on Ethereum, Solana, and BSC, combined.

This growth could come at risk as Polymarket, a top player in the prediction market industry launches its perpetual DEX trading platform in a bid to expand its revenue sources.

This is important as Polymarket has over 1.2 million customers from around the world, including some who use Hyperliquid. As such, in theory, there is a likelihood that this entry may lead to a lower market share for Hyperliquid.

However, on the positive side, Hyperliquid has gained its share despite the rising competition from other similar platforms like Grvt and Aster. Traders see it as a better platform for trading and appreciate its depth of markets, which include cryptocurrencies, stocks, and commodities.

Hyperliquid has continued to experience substantial fees on its network. It made over $52 million in fees in the last 30 days, while a chain like Ethereum made $10 million. Its network fees were also higher than Polymarket’s $19.1 million.

Hyperliquid burns most of its fees, reducing the number of tokens in circulation. In theory, burning should boost the value of the remaining tokens over time.

HYPE ETF Launch is Nearing its Launch

The next potential catalyst for the HYPE price is the upcoming launch of its spot exchange-traded funds (ETFs).

Bitwise was the first to update its HYPE filing, listing its fees as 67 basis points and its ticker symbol as BHYP. Similarly, 21Shares and Grayscale filed updates to their filings.

As a result, these funds are likely to be listed in the coming weeks or months. Such a move will enable American investors to invest in the token.

However, the risk is that the HYPE ETFs may not succeed, as we have seen with other altcoin funds. For example, some of the top altcoin ETFs like Dogecoin, Avalanche, Polkadot, and Litecoin. Most of these tokens have not had substantial inflows since their launch.

Meanwhile, data compiled by CoinGlass shows that futures open interest has fallen over the past few days, from a high of $1.93 billion on April 14 to $1.63 billion, a sign that demand has weakened slightly.

HYPE Price Technical Analysis

The daily timeframe chart shows that the HYPE price has pulled back in the past few days, moving from a high of $46 last week to $40 today. It is hovering at the 50% Fibonacci retracement level.

While the token has remained above the 50-day Exponential Moving Average (EMA), there are signs of a bearish breakdown.

A closer look shows it has formed a rising wedge pattern, composed of two converging trendlines. The two lines are nearing their confluence, meaning that the coin may crash soon.

Also, the two lines of the Percentage Price Oscillator (PPO) have formed a bearish crossover, while the Relative Strength Index (RSI) has moved below the neutral point at 50.

HYPE price chart | Source: TradingView

Therefore, the pair will likely break down to the key support at $35, which coincides with the 38.2% Fibonacci retracement level.

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