Key takeaways
- HYPE’s performance is up 10% in the past 24 hours, outperforming other major cryptocurrencies.
- The coin could rise towards the psychological level of $50 in the near term.
Hyperliquid (HYPE) approaches $40 as US-Iran ceasefire boosts market sentiment
HYPE, Hyperliquid DEX’s native coin, is approaching the $40 mark on Wednesday, adding to its rally linked to the US-Iran ceasefire.
Retail demand for HYPE continues to rise, driving increased interest in open futures contracts amid a broader market rally. Technically, HYPE has broken out of a bearish channel pattern on the 4-hour chart, indicating a bullish outlook in the near term.
Throughout the US-Iran conflict, Hyperliquid has shown resilience, with its 24/7 trading platform for crude oil and other commodities gaining traction during the crisis. The ongoing recovery in the cryptocurrency market, driven by the ceasefire, has increased anticipation for HYPE’s recovery.
according to Coinglass dataOpen interest in HYPE futures reached $1.64 billion on Wednesday, registering a 9% increase over the past 24 hours. Typically, OI expansion during a spot market rally indicates increased demand entering the leveraged market.
Liquidations in the past 24 hours totaled $4.49 million, led by $4.28 million in short liquidations, indicating weakness on the sell side. In addition, the OI Weighted Funding Rate remains positive at 0.0082%, showing continued bullish sentiment among traders.
Will HYPE rise towards the $50 mark?
The 4-hour chart of HYPE/USD is bullish and active, as Hyperliquid is the best performer among the leading cryptocurrencies.
The HYPE pair is trading above the 50- and 200-period Exponential Moving Averages (EMAs) on the 4-hour chart, reflecting the potential for a trend reversal.
At the time of writing, HYPE is trading at around $39.00, extending the breakout gains of a descending channel pattern.
The Moving Average Convergence-Divergence (MACD) line is above its signal and the zero line, indicating strengthening bullish momentum.
The Relative Strength Index (RSI) at 66 remains below the overbought zone, indicating strong buying pressure without obvious exhaustion at this point.
If the rally continues, HYPE will likely rise towards the first major resistance level at $43. Closing the daily candle above this level would pave the way for further upside towards the psychological $50 area.
However, if the market reverses, HYPE could test the 200-period moving average at $37.10. A drop below this support area would negate the upside breakout and deepen the downside risk.
