Key highlights
HYPE has seen a 10% increase in the past 24 hours, surpassing other major cryptocurrencies.
There is potential for the coin to reach the $50 mark in the near future.
Hyperliquid (HYPE) Approaches $40 Following US-Iran Ceasefire Boosting Market Sentiment
Hyperliquid’s native coin, HYPE, is nearing the $40 milestone on Wednesday, continuing its upward trend linked to the US-Iran ceasefire.
The demand for HYPE from retail investors is on the rise, contributing to an increase in futures Open Interest amidst a broader market recovery. From a technical standpoint, HYPE has broken out of a descending channel pattern on the 4-hour chart, indicating a positive outlook in the short term.
Throughout the US-Iran conflict, Hyperliquid demonstrated resilience, with its 24/7 trading platform for crude oil and other commodities gaining popularity during the crisis. The ongoing market recovery, driven by the ceasefire, has heightened expectations for HYPE’s resurgence.
Based on CoinGlass data, HYPE futures Open Interest (OI) reached $1.64 billion on Wednesday, marking a 9% increase in the past 24 hours. Typically, such growth in OI during a spot market rally indicates a rising demand entering the leverage market.
Liquidations in the last 24 hours totaled $4.49 million, with short liquidations accounting for $4.28 million, suggesting weakness on the sell side. Furthermore, the OI-weighted funding rate remains positive at 0.0082%, indicating a consistent bullish sentiment among traders.
Is HYPE Headed Towards the $50 Milestone?
The HYPE/USD 4-hour chart shows a bullish and effective trend as Hyperliquid emerges as the top performer among major cryptocurrencies.
HYPE is trading above the 50- and 200-period Exponential Moving Averages (EMAs) on the 4-hour chart, signaling a potential reversal in trend.
Currently, HYPE is trading around $39.00, extending its breakout from a descending channel pattern.
The Moving Average Convergence Divergence (MACD) line is above both its signal line and the zero line, indicating a strengthening upward momentum.
The Relative Strength Index (RSI) at 66 remains below the overbought threshold, indicating solid buying pressure without signs of exhaustion at this stage.
If the upward momentum continues, HYPE is likely to surge towards the primary resistance level at $43. A daily close above this level could pave the way for further gains towards the psychological barrier of $50.
However, in a market reversal scenario, HYPE may test the 200-period EMA at $37.10. A drop below this support level would invalidate the bullish breakout and increase downside risks.
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