Hyperliquid news update: Growing user base could send HYPE back to $45

Key point:

• Hyperliquid’s solid growth trajectory could retain investors’ interest in HYPE.

Hyperliquid (HYPE) has witnessed a strong growth trajectory in the past year, with average trading volume soaring, reaching $3 to $5 billion from less than $100 million, according to CoinGlass’ semi-annual crypto derivatives outlook.

“Hyperliquid accounts for more than 80% of the DeFi perpetual contracts market share,” the report added. 

Could Hyperliquid’s growing dominance boost HYPE’s performance? Let’s analyze the charts to find out.

HYPE bounced off the 50-day simple moving average ($37.08) on Tuesday, indicating demand at lower levels.

The gradually upsloping 20-day exponential moving average ($38.43) and the relative strength index (RSI) just above the midpoint indicate a slight edge to the bulls. The HYPE/USDT pair could rise to $41.23, which is a crucial overhead resistance. If this level is scaled, the pair could surge to $44 and later to $45.80. 

The 50-day SMA is the critical support to watch out for on the downside. A break below the level could sink the pair to $35.33 and subsequently to $30.69.

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The pair has been consolidating between $36.82 and $41.23 on the 4-hour chart. The flattish moving averages and the RSI near the midpoint do not give a clear advantage either to the bulls or the bears.

If the price remains above the moving averages, the pair could rise to $40 and later to $41.23. A break above $41.23 signals that buyers have overpowered the bears. That could start a rally toward $44.

Conversely, if the price slips and maintains below the moving averages, the pair could slump to the solid support at $36.82.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.