Key Takeaways
- HYPE exited a multi-week bearish pattern on April 8, triggering a strong uptrend.
- Price action has moved above the Ichimoku Cloud, signaling strong support.
- Rising Open Interest suggests increasing trader exposure and bullish sentiment.
- Positive BBP readings confirm bulls still control HYPE’s price action.
After its brief drop below $10 on April 6, Hyperliquid’s (HYPE) price has risen nearly 100%. As of this writing, HYPE’s price trades at $19.96 amid rising bullish sentiment.
The rebound erased recent losses and pushed HYPE back into a key price range that could act as a catalyst for higher values. On-chain data also revealed real demand behind this bounce.
But where will HYPE’s price go from here? CCN takes a look at the altcoin’s potential in the short term.
HYPE Jumps Nearly 100% from Lows
HYPE’s price was stuck in a falling channel between February and early April on the daily chart. During that period, the altcoin’s price fell from $26.84 to $10.12.
But on April 8, bulls neutralized bearish dominance and drove HYPE above the resistance at $13.55. This break above the upper trendline of the bearish pattern ensured that the cryptocurrency surged further.
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Amid that shift, HYPE’s price also broke above the Ichimoku Cloud. Typically, when the price trades below the cloud, it faces resistance.
But now that it’s above, the Hyperliquid coin has gained strong support, increasing the likelihood of a continued upswing. In addition to that, the Moving Average Convergence Divergence (MACD) has also formed a bullish crossover on the same timeframe.
If this trend continues, HYPE’s price might break above any major resistance ahead and hit a higher value.
Open Interest Exceeds $600M
Outside of the technical outlook, Coinglass data shows that HYPE’s Open Interest (OI) has been increasing lately. The OI refers to the sum of the value of open contracts in the market.
High OI indicates rising trader exposure to a cryptocurrency and rising buying pressure in the derivatives market. On the other hand, a drop in the OI means traders are increasingly closing their positions and taking liquidity out of the market, which is bearish.
At press time, the OI had risen above $600 million. From a trading point of view, the rise in OI alongside HYPE’s price increase indicates strength to the upside. Therefore, if Open Interest rises, the HYPE might do the same.
HYPE Price Forecast: $23 Coming
An assessment of the daily chart again shows that the Bull Bear Power (BBP) has remained positive. A negative BBP typically indicates that bears are dominant, which signals selling pressure.
Therefore, this position indicates that buying pressure is still very present around HYPE. If this remains the same, HYPE’s market value could rise past the resistance at $21.07.
Should that be the case, the market value might hit $23.84 in the short term. On the contrary, this prediction might not pass if bears take control.
If that were to happen, HYPE’s price could decline to $14.37 at the 0.786 Fibonacci retracement level.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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