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Hyperliquid Price Forecast: HYPE flashes breakout potential amid muted retail sentiment

  • Hyperliquid edges higher from a key support level toward a key resistance trendline near $30.
  • Derivatives data shows muted retail interest as Open Interest declines.
  • The technical outlook is bullish in the short term, with focus near $30.

Hyperliquid (HYPE) inches closer to $30 at press time on Friday, extending the 1% rebound from the previous day. The recovery lacks market confidence, as HYPE futures Open Interest is declining, indicating risk-off sentiment among investors. Technically, HYPE approaches a crucial crossroads near $30 as a short-term increase in bullish momentum teases a potential upside breakout. 

Derivatives data points to softened demand

Hyperliquid struggles to retain investor confidence in the short term amid broader pressure in the cryptocurrency market. Following the HIP-3 release, which offered futures trading of tokenized commodities on the Decentralized Exchange (DEX), the market awaits HIP-4, which is expected to introduce prediction markets.

The HYPE futures market struggles to sustain bullish demand, leading to risk-off sentiment. CoinGlass data shows the HYPE Open Interest (OI) stood at $1.30 billion on Friday, continuing its steady decline as traders close positions (forced liquidation) or reduce leverage, pointing to reduced risk appetite.

HYPE derivatives data. Source: CoinGlass

Technical outlook: Will HYPE extend gains above $30?

Hyperliquid token is extending a rebound from the S1 pivot point at $28.15, testing the 200-period Exponential Moving Average (EMA) on the 4-hour chart at $29.50. At the time of writing, the perpetuals-focused DEX token is up 1% on Friday but remains below its 50- and 200-period EMAs, confirming a prevailing bearish bias. 

The crucial resistance for the HYPE recovery is at the confluence of the 50-period EMA at $29.95 and the descending trendline near $30, which connects the highs on February 2 and February 16. 

A potential close above $30 could drive the HYPE token rally toward the R1 pivot point at $33.40, suggesting a post-breakout upside of roughly 10%.

The Moving Average Convergence Divergence (MACD) has crossed above its signal line on the 4-hour chart, indicating renewed bullish momentum. At the same time, the Relative Strength Index (RSI) is at 48 on the same chart, edging higher as selling pressure wanes. 

HYPE/USDT 4-hour price chart.

If Hyperliquid fails to sustain above $28.15, it could trigger a steeper decline toward the S2 pivot point at $25.60.

Author

Vishal Dixit

Vishal Dixit

FXStreet

Vishal Dixit holds a B.Sc. in Chemistry from Wilson College but found his true calling in the world of crypto.

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