Hyperliquid's HIP-3 token is experiencing a dramatic surge in market activity, with daily trading volumes reaching $5–6 billion and open interest surpassing $1.1 billion. According to data from Hyperliquid Hub, this marks a significant shift from the modest, consistent volumes seen in October and November 2025. The acceleration began in December, with the most substantial spike occurring in late January and early February 2026.
Hyperliquid Hub emphasized the depth of this growth, stating, "HIP-3 is not only expanding in trading scale, it is also becoming an increasingly important part of the ecosystem." The sustained high volume combined with rising open interest indicates traders are holding positions for the long term, signaling a move beyond short-term speculation into a genuine growth phase for the token.
However, this bullish momentum faces a significant near-term threat from the derivatives market. A separate analysis reveals a cluster of approximately $28.9 million in short liquidations sitting just above the $35 price level for Hyperliquid's native token, HYPE. This concentration reflects heavy bearish positioning among futures traders.
The technical outlook presents a mixed picture. The Moving Average Convergence Divergence (MACD) indicator registered a bullish crossover, suggesting building buying pressure. Yet, the dominant short exposure in futures keeps the altcoin vulnerable to sudden volatility. A decisive break above $35 could trigger the massive short squeeze, potentially amplifying gains toward $38 and setting up a Golden Cross formation. Conversely, a breakdown below the $30 support level could shift sentiment decisively negative, exposing the next major support at $26.
