Hyperliquid Price Forecast: HYPE poised for $50 breakout as USDH stablecoin launches
- Hyperliquid price rises toward the $50.00 level, buoyed by a bullish wave in the broader crypto market.
- Native Markets confirms Hyperliquid’s native stablecoin USDH launch on the DEX.
- The MACD sell signal suggests that downside risks may prevail, delaying the anticipated breakout above $50.00.
Hyperliquid (HYPE) is staging a recovery, following five consecutive days of declines, which have been mirrored across the cryptocurrency market since late last week.
The native Decentralized Exchange (DEX) token trimmed gains by approximately 27.5% from its record high of $59.43 before attempting the current recovery. If risk-off sentiment fades, supported by the launch of the DEXs’ native stablecoin USDH, a steady reversal above the $50.00 level could follow in the coming days.
Native Markets debuts USDH stablecoin on Hyperliquid
Native Markets, the issuer of USDH, a native stablecoin on Hyperliquid perpetual contracts trading DEX, has officially announced the token’s launch on X. According to the social media post, “USDH is now live for all Hyperliquid users,” featuring a spot order book on HyperCore. The order book comprises $15 million USDH pre-printed over the last 24 hours.
Native Markets emphasized its commitment to the agreed-upon framework, where $0.50 of every US Dollar (USD) earned will be channeled to an Assistance Fund. The contribution begins accruing on Wednesday.
However, the launch is not complete, with Native Markets expected to continue the phased rollout of USDH over the coming months, including HyperEVM integrations and additional features such as USDH as a spot quote asset, native minting on HyperCore, as well as USDH-margined perpetual order books via HIP-3.
Meanwhile, retail interest in HYPE has declined over the past few days, with the futures Open Interest (OI) dropping to $2.17 billion from $2.54 billion on Friday.
The decline in OI, which represents the notional value of outstanding futures contracts, indicates a lack of conviction in Hyperliquid sustaining an uptrend in the short term. If retail demand remains subdued in the coming days, bulls may struggle to sustain the uptrend, targeting highs above $50.00.
Hyperliquid Futures Open Interest | Source: CoinGlass
Technical outlook: Hyperliquid bulls attempt recovery
Hyperliquid trades above the 100-day Exponential Moving Average (EMA), which currently holds at $43.94. If bulls sustain the intraday gains on Wednesday, they could break five consecutive days of declines, increasing the probability of a sustained uptrend above the ascending trendline and the critical $50.00 level.
HYPE/USDT daily chart
Still, traders should pay attention to the 50-day EMA at $48.10, a supply-rich level that could delay the breakout. Additionally, the Moving Average Convergence Divergence (MACD) indicator has maintained a sell signal since Sunday, which encourages investors to reduce their exposure, potentially contributing to increased selling pressure.
If the immediate support provided by the 100-day EMA support at $43.94 crumbles, the Hyperliquid price could resume the downtrend, bringing the next support at $40.38, which was previously tested on August 22, within reach.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Author
John Isige
FXStreet
John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren
