Community Trust ScoreVerified
Hyperliquid (HYPE) has shown signs of recovery over the past three days, edging closer to the $40 level as market sentiment shifts from intense selling to cautious optimism. The token’s retracement to the 200-day Exponential Moving Average (EMA) indicates a crucial technical support level, attracting renewed attention from traders and retail investors alike.
Despite this positive momentum, data from decentralized exchanges (DEXs) points to a reduction in overall trading demand, signaling that the rally may be contingent on renewed market activity and user engagement.
Hyperliquid Reclaims Key Technical Level
HYPE’s latest price movement shows a steady climb above $38, crossing the 200-day EMA, a critical trend indicator. Technical analysts often view this average as a benchmark for medium-term momentum. A decisive close above the 200-day EMA could pave the way for a move toward the 100-day EMA at $43, and potentially the pivot point resistance near $48.
Momentum indicators on the daily chart are beginning to reflect a shift in sentiment. The Moving Average Convergence Divergence (MACD) has started to recover toward its signal line, signaling that selling pressure may be declining. Similarly, the Relative Strength Index (RSI) has risen from oversold territory to 42, suggesting that bearish momentum is easing.
These indicators collectively hint at a potential bullish trend continuation if buying interest strengthens.
Decline in Hyperliquid Network Activity Raises Concerns
Despite the recent price rebound, Hyperliquid’s network metrics indicate a slump in user activity. Following the flash crash on October 10, which caused roughly $19 billion in liquidations across the market, traders have been cautious. Total Open Interest (OI) on Hyperliquid dropped to $7.20 billion on October 17 from $15.10 billion on October 9, reflecting more than a 50% decline.
Additionally, inflows to the platform have slowed, with cumulative inflows falling to $4.50 billion by the end of last week. The combination of lower OI and declining inflows indicates a hesitant trading environment. If this trend continues, HYPE’s recovery could face challenges, as reduced participation may limit upward momentum despite technical signals.
Hyperliquid Assistance Fund Boosts Confidence
While user activity is declining, Hyperliquid itself has taken measures to support the token’s value. The Hyperliquid Assistance Fund has acquired 33.53 million HYPE tokens, valued at over $1.29 billion. These buybacks reduce circulating supply and signal strong confidence from the company, potentially encouraging retail investors to step in.
The revenue-based buyback model is particularly significant because it reinforces the token’s long-term stability and highlights the platform’s proactive measures to sustain demand even during periods of low trading activity.
Retail Interest Suggests Potential Upside
Data from CoinGlass shows that retail traders are beginning to return to the market. HYPE’s Open Interest on Monday reached $1.34 billion, marking a 2.45% increase over 24 hours. This uptick suggests that traders are taking calculated risks, either by increasing long positions or leveraging existing holdings.
Such renewed interest could act as a catalyst for further price gains. Retail sentiment often plays a critical role in altcoin rallies, and HYPE appears to be attracting attention as buyers look for opportunities following the recent market downturn.
Technical Outlook and Key Resistance Levels
Looking at the technical landscape, HYPE has the potential to continue its rebound if it maintains support above the 200-day EMA. The next significant levels to watch are the 100-day EMA at $43 and the pivot point at $48. Breaking through these levels could offset bearish signals from potential EMA crossovers and strengthen the bullish momentum.
Traders should also monitor daily chart indicators like MACD and RSI. A MACD crossover and a rising RSI above 50 could confirm the continuation of the recovery phase, signaling that buying pressure is gaining traction.
Final Thoughts: Is a Sustainable Recovery Possible?
Hyperliquid’s recovery shows promising signs, but challenges remain. While technical indicators are favorable, declining network activity and lower trader demand may slow the rally if retail and institutional interest does not pick up. The ongoing buyback program by the Hyperliquid Assistance Fund helps counteract this concern, providing structural support for HYPE’s price.
If momentum continues, HYPE could target the $43–$48 range in the short term, with retail interest potentially driving further upside. However, cautious trading behavior and market volatility suggest that investors should closely watch technical levels and network activity before making significant positions.
In conclusion, Hyperliquid’s price recovery is underway, but the strength of the rally will depend on a combination of technical confirmations, retail demand, and broader market conditions. For traders and investors, the next few sessions could be critical in determining whether HYPE can sustain its upward trajectory.
