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Hyperliquid outperforms other major coins, eyes further gains

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Hyperliquid's bullish chart
Hyperliquid's bullish chart

Key takeaways

  • HYPE is up 10% in the last 24 hours, outperforming the other major cryptocurrencies.
  • The coin could surge towards the $50 psychological level in the near term.

Hyperliquid (HYPE) nears $40 as US-Iran ceasefire boosts market sentiment

HYPE, the native coin of the Hyperliquid DEX, is approaching the $40 mark on Wednesday, extending its recovery linked to the US-Iran ceasefire. 

Retail demand for HYPE continues to rise, driving increased futures Open Interest amid a broader market rally. Technically, HYPE has broken out of a falling channel pattern on the 4-hour chart, signaling a bullish near-term outlook.

Throughout the US-Iran conflict, Hyperliquid showed resilience, with its 24/7 trading platform for crude oil and other commodities gaining traction during the crisis. The ongoing recovery in the crypto market, driven by the ceasefire, has increased anticipation for HYPE’s recovery.

According to CoinGlass data, HYPE futures Open Interest (OI) reached $1.64 billion on Wednesday, marking a 9% increase in the last 24 hours. Typically, such an OI expansion during a spot market rally signals growing demand entering the leverage market.

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Liquidations in the last 24 hours totaled $4.49 million, led by $4.28 million in short liquidations, indicating a sell-side weakness. Additionally, the OI-weighted funding rate remains positive at 0.0082%, showing sustained bullish sentiment among traders.

Will HYPE rally towards the $50 mark?

The HYPE/USD 4-hour chart is bullish and efficient as Hyperliquid is the best performer among the leading cryptocurrencies. 

HYPE is trading above the 50- and 200-period Exponential Moving Averages (EMAs) on the 4-hour chart, reflecting a potential trend reversal. 

At the time of writing, HYPE trades around $39.00, extending the breakout gains of a falling channel pattern.

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The Moving Average Convergence Divergence (MACD) line is above its signal and the zero line, suggesting strengthening upside momentum. 

HYPE/USD 4H Chart

The Relative Strength Index (RSI) at 66 remains below overbought territory, suggesting firm buying pressure without clear exhaustion at this stage.

If the rally persists, HYPE would likely surge towards the first major resistance level at $43. A daily candle close above this level would pave the way for further rally towards the $50 psychological zone.

However, if the market reverses, HYPE could test the 200-period EMA at $37.10. A drop below this support zone would nullify the bullish breakout and deepen the downside risk.

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Crypto World

Bitcoin Bulls Struggle With $72,000 Reclaim Despite US-Iran Ceasefire

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Bitcoin Bulls Struggle With $72,000 Reclaim Despite US-Iran Ceasefire

Bitcoin bulls failed to stay above $72,000 for long as BTC price action already began to discount the impact of a US-Iran ceasefire agreement.

Bitcoin (BTC) hit new three-week highs into Wednesday’s Wall Street open as stocks surged on a US-Iran ceasefire.

Key points:

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  • Bitcoin briefly hits new three-week highs before round-tripping its gains.

  • Iran ceasefire relief fails to last as traders demand that bulls reclaim higher levels.

  • More volatility is due thanks to US inflation reports.

BTC price fails to stay above $72,000

Data from TradingView captured BTC/USD reaching $72,865 on Bitstamp before cooling the day’s gains.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

News of a minimum two-week ceasefire between the US, Israel and Iran sent risk assets higher in an instant, with the S&P 500 up by more than 2.5% at the open.

WTI crude oil declined to as low as $91 per barrel as oil-supply crisis fears eased and traffic began to resume through the Strait of Hormuz. This came despite reports of an attack on a Saudi oil pipeline.

CFDs on WTI crude oil one-hour chart. Source: Cointelegraph/TradingView

“The S&P 500 is now set to open above 6,800, trading just 2.9% away from a new record high. The index has added +$1.6 TRILLION today,” trading resource The Kobeissi Letter wrote in its latest market coverage on X.

S&P 500 one-hour chart. Source: Cointelegraph/TradingView

Among Bitcoin market participants, the relief was also palpable.

“I mentioned earlier that a ceasefire would be a clear direction on the markets. It happened,” crypto trader Michaël Van de Poppe wrote in an X response

“Bitcoin breaks through the crucial $71K level and builds a bullish structure. Oil is down and the Strait is open, which means that there’s a mean reversion play active on Bitcoin.”

BTC/USDT one-day chart. Source: Michaël Van de Poppe

Van de Poppe described the need to hold support at $69,500 as “crucial.”

“That would strengthen the entire theory of a higher lows, higher highs and continues the momentum upwards and is likely going to fall alongside a new all-time high on the Nasdaq,” he added.

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More inflation volatility on the horizon

Trader Daan Crypto Trades meanwhile said that $72,000, a sticking point in recent weeks, needed to be cleared.

Related: Bitcoin RSI ‘nearly perfectly’ copying end of 2022 bear market: Analysis

“Another day another test of the $72K level. Let’s see if the bulls can push through this time around,” he told X followers. 

“I want to see a clean break and hold above that area. Ideally for more than 1-2 days this time.”

BTC/USDT perpetual contract eight-hour chart. Source: Daan Crypto Trades/X

Earlier, Cointelegraph reported on other traders’ concerns about overall BTC price strength, which argued that Bitcoin bulls “still have a lot of work to do.”

The remainder of the week will see key US inflation releases, these set to show the initial impact of the Iran conflict and spark characteristic risk-asset volatility.

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