The price of HYPE has bounced back after yesterday’s decline and is now gearing up to test an important bullish pattern, which might result in further gains.
On April 8, during the morning hours in Asia, Hyperliquid (HYPE) surged by 32.7%, reaching an intraday peak of $12.5, bringing its market capitalization back above $4 billion. Daily trading volume saw an almost 50% increase from the previous day, exceeding $246 million.
This recent uptick has compensated for the losses incurred over the past two days, which had taken place amid a broader market downturn. This downward trend followed the announcement of new U.S. trade tariffs by Donald Trump, igniting concerns over a potential global trade war and causing the entire cryptocurrency market to plummet by over 13%.
The current rally in HYPE comes at a time when open interest has climbed back above $450 million, increasing by 20% from the previous day, indicating a heightened interest from derivative traders. While the overall derivatives market remains relatively stable, favorable funding rates since March 25 suggest that traders still maintain a bullish outlook.
The recent price increase coincided with a spike in trading activity on Hyperliquid.
Data from DeFi Llama indicates that Hyperliquid experienced a significant surge in trading volume, jumping 66% over the previous day to reach $13.05 billion. In contrast, its closest competitor, Jupiter (JUP), managed only $1.6 billion.
To date, Hyperliquid has processed more than $1.22 trillion in volume, comfortably surpassing Jupiter’s total of $278.4 billion.
Hyperliquid also attracted attention following a notable transaction in which a whale transferred 4.52 million USDC to the platform and went long on ETH with 20x leverage, initiating a massive trade valued at approximately 47,253 ETH, or around $70 million.
Looking ahead, crypto analyst Glitch pointed out that HYPE is approaching a significant resistance range between $11.7 and $12.5. Should it manage to break above this level, there is potential for it to turn into support and extend its rally to as high as $18.5 or even $20.5.
Trader Crypto Target shared insights from a 1-day HYPE/USDT chart, emphasizing that HYPE must turn the $11.7 – $12.5 resistance zone into support to avoid potential losses.
At the time of writing, HYPE was trading at $11.95.
HYPE Price Analysis
Upon examining the 4-hour chart, it appears that HYPE is on the verge of breaking out of a falling channel that has been in effect since March 24. Traders interpret this as a bullish indicator, often leading to a significant rally following a successful breakout.
The MACD is also indicating bullish momentum, with the MACD line crossing above the signal line. Moreover, the Supertrend indicator has turned green, typically suggesting that buyers have regained control for the time being.
Consequently, the most probable target for HYPE is the psychological resistance level at $15, which it struggled to surpass earlier this month. A breakout above this could pave the way for a move towards the $20 threshold.
Disclaimer: The information presented here does not constitute investment advice. The content and materials provided are solely for educational purposes.