Two tokens worth watching: HYPE and KITE. Both are showing bullish technical setups backed by on-chain data that points to a shift in risk appetite across crypto markets.
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Leveraged positions are expanding, funding rates are spiking, and RSI confirms momentum — all at once.
HYPE: Hyperliquid's Breakout Has Legs
Hyperliquid's native token HYPE has broken above key support levels. As of this writing, HYPE trades around $29.29 with a market cap of roughly $9.8 billion — up from $22 in late January, a clean 33%+ move on the monthly.
The setup: Hyperliquid runs a fully onchain order book for perpetual futures on its own L1, capable of processing up to 200,000 TPS with sub-second finality. The platform has grown past 1.64 million users, regularly handles around $1.8 billion in daily volume, and competes directly with Bybit and dYdX.
HYPE functions as the gas, staking, and fee token — every trade on the platform touches it. Volume scales, demand scales. The protocol also runs a buyback-and-burn using trading fees, creating persistent deflationary pressure on supply.
RSI confirms bullish momentum, and fresh inflows are adding fuel. According to AMBCrypto's analysis of HYPE's bull case, the ADX — a trend strength indicator — still shows weakness. ADX lags by design. It strengthens after momentum builds, not before. Waiting for ADX confirmation means buying higher.
Price targets of $150 by July 2026 are circulating in that same breakdown. Whether that hits or not, the structural thesis holds — permissionless derivatives trading is a massive addressable market, and Hyperliquid is one of the few protocols executing at scale with real traction.
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KITE: Leveraged Conviction Tells the Story
KITE is the smaller, more speculative play. The token currently trades around $0.24 with a market cap of approximately $24 million — up from $0.12 a month ago. That is a 100% move on the 30-day, the kind of vertical that signals momentum capital is piling in.
KITE operates as a community-driven memecoin on the Solana ecosystem, and its rally is driven by a surge in open interest and funding rate spikes — leveraged traders entering directionally. OI expansion during a price rally means new positions are being opened, not just existing shorts getting squeezed.
The token's low market cap makes it a magnet for speculative capital looking for outsized moves, and the derivatives data confirms that conviction is backing the bid.
The near-term risk: a pullback toward $0.20. AMBCrypto's KITE analysis flags elevated funding rates as a precursor to corrections when overleveraged longs get flushed. The bigger signal is that speculative capital is flowing into smaller-cap altcoins at all — that tells you where the market's head is at.
The Bigger Picture: Risk-On Is Back
Traders are rotating out of stables and majors into mid-cap and small-cap alts with leverage. The "sit in stablecoins and wait" phase is ending for a growing number of participants. We have been tracking this rotation across DeFi and altcoin markets, and the signals keep stacking.
Altcoin seasons start like this — individual tokens breaking out on strong technicals, drawing in momentum capital. HYPE and KITE are two different plays (infrastructure vs. speculative momentum), but the pattern is the same: breakout, volume confirmation, leveraged follow-through.
Watch the funding rates and OI trends, not the price candles. The derivatives market tells you what spot is about to do.
Leveraged rallies can unwind fast, and weak ADX on HYPE means the trend has not fully established. The setup is there and the capital flows are real. For anyone tracking altcoin momentum, these two are writing the playbook right now.
