Hyperliquid Price Rises 3% as HYPE Bulls Eye $30 Breakout

Highlights:

• The Hyperliquid price has increased by 3% to trade at $29 mark today.
• The derivatives open interest shows decreasing momentum, as investor confidence slips.
• The technical outlook shows mixed signals as Hyperliquid price eyes the $30 zone.

On Friday, Hyperliquid (HYPE) price has soared by about 3% to trade at $29.27 mark today. The recent recovery, however, shows a staggering market confidence in the sense that Open Interest in HYPE futures is losing value. Often, this is a sign of risk-off sentiment among the investors. HYPE bulls are facing a cushion against further upside at around $30 as a short-term spur in the expansion of bullish energy, hints of a possible breakout.

Hyperliquid also has a weakness of losing investor confidence on a short-term basis due to the wider pressure in the cryptocurrency market. After the release of HIP-3 that provided the trading of tokenized commodities based on futures trading on the Decentralized Exchange, the market is waiting for the release of HIP-4. 

Meanwhile, the HYPE futures market’s inability to maintain a bullish grip is sparking a drop in retail demand. According to derivatives data, on Friday, the HYPE Open Interest (OI) was at $1.30 billion, marking a 0.10% decrease in a day. With the continued liquidation of positions, the indicator indicates that there is a decreased risk appetite. Moreover, the volume has also dropped by about 3.19% to $941 million, indicating that investor confidence has decreased.

Hyperliquid Price Eyes a Breakout Above $30

The HYPE/USD 4-hour chart shows the price is trading around $29.17 with a recent bounce from the 200-day Simple Moving Average at $29. This indicates building momentum, only if the bulls keep the energy alive. The Hyperliquid price has entered a medium-term consolidation zone, within a falling channel. It is currently facing resistance by the 50-day SMA at $30.22. The RSI at 47.18 sits in neutral territory, but with potential to move to the upside. In the meantime, there is a mixed sentiment in the market, as the bulls and bears aim to take control.

Looking ahead, the $30 resistance aligning with the 50-day SMA is the next big test for the HYPE bulls. If the Hyperqliquid price smashes through, it could surge toward the $33-$38 psychological level. However, a drop below the $29 floor could spell trouble, potentially sliding back to $28-$27 if the bears take over.

The chart’s momentum, with the daily trading volume picking up by 7%, reinforces a potential upside. Notably, the 200-day SMA on the 4-hour chart is trending upward, giving the bulls strength to rally. However, with the crypto market wobbling, as seen by BTC sliding towards the $66,000 mark, traders should be cautious.  This is because there might be a pullback to $29, where the support line holds strong. In the short term, HYPE could surge, hitting the $30 zone if the hype holds. However, for the long term, it is a wait-and-see strategy as there is mixed sentiment around the crypto market.