Hyperliquid (HYPE) is currently trading around $25, marking a roughly 3% increase from the previous session. The perpetuals exchange is showing signs of a short-term recovery in active users, although total fees collected for the week have fallen to their lowest levels since the beginning of the month.
Derivatives market data indicates a return of retail investor interest, evidenced by the increasing open interest in HYPE futures contracts and a positive funding rate, reflecting bullish sentiment.
However, the technical outlook for Hyperliquid remains uncertain. While selling pressure seems to be weakening, potential price recoveries may encounter significant resistance levels in the short term.
Increased Retail Investor Interest and User Recovery
Data from Artemis reveals a surge in daily active users, reaching 13,800 on Friday, compared to 9,100 on December 6th. This suggests a short-term recovery, although it occurs within a broader declining trend.
Should the overall cryptocurrency market stabilize, this recovery could strengthen, fostering sustained growth in Hyperliquid's user base and demand.
- Rising User Count: Daily active users increased significantly, signaling potential recovery.
- Market Stability: Overall crypto market stability could further boost user growth.
Contrasting this, DeFiLlama data indicates that total transaction fees collected last week amounted to $16.11 million – the lowest weekly figure since early December. This suggests that despite signs of renewed user activity, market risk appetite remains cautious, resulting in lower fee generation.
Interestingly, there's a notable increase in retail investor interest in the HYPE token within the derivatives market. According to CoinGlass, open interest (OI) for HYPE futures contracts has reached $1.42 billion, a 4.86% increase in just 24 hours.
The funding rate remains positive at 0.0073%, indicating that bulls are in control as traders are willing to pay fees to maintain long positions, reflecting more optimistic short-term expectations.
Hyperliquid Recovers as Selling Pressure Weakens
Hyperliquid (HYPE) is currently trading around $25, indicating sideways consolidation after a five-session losing streak last week. The nearest resistance is identified at the Pivot S1 level around $26.03, followed by a resistance trendline connecting the highs formed on October 30th and December 4th, around $28.00.
If HYPE decisively breaks above $28, the upward momentum could extend towards the 50-day Exponential Moving Average (EMA) at $32.36 – a key technical level that could test the intermediate-term trend.
- Key Resistance Levels: $26.03 (Pivot S1), $28.00 (Trendline).
- Potential Target: $32.36 (50-day EMA).
Technical signals on the daily timeframe indicate a clear weakening of selling pressure. The Relative Strength Index (RSI) is currently at 37 and trending upward, reflecting a gradual exit from oversold territory. This suggests that previous selling pressure is waning, opening up the possibility of a short-term rebound.
Furthermore, the Moving Average Convergence Divergence (MACD) is approaching the signal line, implying a potential bullish crossover in the near future. If confirmed, this would reinforce the improving trend momentum.
Conversely, if selling pressure returns, HYPE could retreat to a key support area ranging from the October 10th low to the Pivot S2 point, corresponding to the $20.82 - $20.15 range, where defensive buying is expected to emerge.
FAQs
What's driving the improved Hyperliquid price outlook and rising buying demand?
The Hyperliquid price outlook is improving due to a short-term recovery in active users and increased retail investor interest in HYPE futures contracts, as shown by rising open interest and a positive funding rate, indicating bullish sentiment.
How is the Hyperliquid user count trending, and what could impact its growth?
The Hyperliquid user count has seen a recent surge in daily active users, suggesting a short-term recovery. Overall crypto market stability could further boost user growth and sustain this positive trend.
What are the key resistance levels to watch for in the Hyperliquid price outlook?
Key resistance levels for Hyperliquid include $26.03 (Pivot S1) and $28.00 (Trendline). A decisive break above $28 could lead to a potential target of $32.36 (50-day EMA).
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