Key takeaways
- Hyperliquid settled around $40 on Thursday, up 1.1% over the past 24 hours.
- A negative financing rate gives HYPE a mixed signal in the market.
Hyperliquid (HYPE) is trading near $40.95 at press time on Thursday, holding steady after a 3%+ gain in the previous session.
While the decentralized exchange token (DEX) has managed to maintain recent levels, weak retail demand in the leveraged market and a developing rising wedge pattern on the chart keep the broader outlook neutral to bearish.
The HYPE futures market indicates lower demand
HYPE initially attracted strong retail interest during rising geopolitical tensions over the situation between the US, Iran and the Strait of Hormuz, as its platform enabled 24/7 trading of commodities such as oil and precious metals.
However, as geopolitical pressure eased following signals about extended diplomatic timelines, speculative interest in the token began to wane.
Data from Queen Glass HYPE futures show open interest at around $1.63 billion, moving mostly sideways – an indication that trader participation has stabilized.
Meanwhile, the funding rate sits at -0.0061%, indicating a growing tendency towards short positions as traders increasingly bet on downside risks.
Technical Outlook: Bears could push the price down
The 4-hour chart of HYPE/USD is bearish and active, as HYPE remains supported above the 50-day Exponential Moving Average (EMA) near $38.46 and the 200-day EMA near $34.51.
The structure on the 4-hour frame forms a rising wedge pattern, which is considered a bearish pattern when momentum weakens. Momentum indicators are also painting a bearish picture.
The MACD remains in negative territory, indicating fading bullish strength, while the RSI at 47 reflects increasing bearishness.
If sellers remain in control, they will face immediate support at the trend line near $40.33. A break below this level could open the way towards the 50-day EMA at $38.46, followed by stronger support near the 200-day EMA at $34.51.
However, if the bulls rally, resistance will first appear at $43.71, with further upside identified near $45.77 at the upper boundary of the trend line.
