Hyperliquid (HYPE) Surges to $40 as Whale Activity and Open Interest Soar

Key Highlights

• HYPE surged approximately 10% to reach the $40 price level, establishing itself as the top gainer among the 20 largest cryptocurrencies by market capitalization
• Open Interest increased to $1.67 billion, marking the highest reading since early February and indicating significant new capital inflows
• Funding rates shifted into positive territory at 0.008%, demonstrating that long position holders are compensating short sellers
• The 4-hour RSI indicator stands at 70, approaching overbought levels, while the MACD displays a bullish crossover pattern
• Tokenized assets accounted for 33% of Hyperliquid’s weekly trading volume, establishing a new platform record

Hyperliquid (HYPE) has climbed to $40 following a nearly 10% price increase on Monday. This upward movement enabled HYPE to surpass Cardano’s ADA, securing the position as the tenth-largest cryptocurrency by market capitalization.

The price surge is supported by robust on-chain metrics and derivatives market indicators. According to CryptoQuant analytics, significant whale transactions, buy-side pressure dominance, and stabilizing conditions across both spot and futures markets are evident.

In the derivatives markets, Open Interest (OI) expanded to $1.67 billion on Tuesday. This represents the highest measurement recorded since the beginning of February, with consistent growth observed throughout March.

An increase in OI generally indicates that fresh capital is flowing into the market. This additional liquidity could provide support for the current upward price trajectory.

Hyperliquid’s funding rates transitioned to positive territory on Sunday and climbed to 0.008% by Tuesday. This shift from negative to positive funding rates indicates that traders with long positions are compensating those with short positions — a clear indication of robust bullish sentiment.

Chart Analysis Suggests Further Upside Potential

Examining the 4-hour timeframe, HYPE successfully breached a daily resistance barrier at $36.51 last Thursday. The token established support around that threshold the next day before climbing roughly 10% through Monday’s trading session.

The 4-hour RSI reading stands at 70, positioned just beneath overbought conditions. Additionally, the MACD indicator has generated a bullish crossover signal, accompanied by expanding green histogram bars that reinforce the positive technical outlook.

Should HYPE maintain its upward momentum, the primary target remains the $50 psychological threshold. Nevertheless, the October 29 peak of $49.88 could serve as resistance due to concentrated sell-order activity in that price zone.

A brief retracement within the overall uptrend remains possible. In such a scenario, the initial support level to monitor would be $36.51, with secondary support at $33.60, which was most recently tested on March 10.

Record-Breaking Tokenized Asset Trading Activity

Beyond price movements, tokenized assets represented 33% of Hyperliquid’s total weekly trading volume. This marks an unprecedented all-time high proportion for this asset category on the platform, based on Blockworks data.

Tokenized assets also constitute approximately 21% of the total open interest on Hyperliquid. Open interest represents the aggregate value of all active derivative contracts.

The expanding proportion of tokenized assets indicates that an increasing number of traders are maintaining positions in these instruments over extended timeframes.

Tokenized assets represent conventional financial instruments or tangible real-world assets that have been digitized on blockchain networks, enabling them to be exchanged within decentralized trading environments.

As of Tuesday’s trading session, HYPE is valued at $40 with bullish traders eyeing $50 as the subsequent critical resistance level.

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