Hyperliquid (HYPE) is beginning to show signs of exhaustion after the coin added 20% to its value since the start of the week.
The perpetuals-focused Decentralized Exchange (DEX) sees increased demand for Real-World Asset (RWA) futures, driving Open Interest to $1.5 billion.
The coin could resume its rally soon as demand for an institutional-grade 24×7 trading platform increases amid rising Middle East tensions affecting Oil prices.
HYPE rally stalls at $38 as Hyperliquid adoption continues
HYPE rallied to the $38.42 level on Thursday, overtaking the February 3 swing high of $38 in the process.
The rally this week comes as Hyperliquid, a leading decentralized perpetual trading platform, continues to record high trading volume.
The war in the Middle East is fueling upside pressure on Crude Oil prices by restricting oil supply from the Strait of Hormuz.
The demand for trading the highly volatile crude oil prices has driven retail and institutional traders towards Hyperliquid, thanks to its 24×7 decentralized trading platform.
Hyperliquid expanded to RWA futures with the Hyperliquid Improvement Proposal-3 (HIP). The platform allows users to deploy perpetuals with a 1 million HYPE token deposit.
Thanks to the rally, HYPE’s futures Open Interest currently reads $1.50 billion, up from the $1.33 billion recorded on Thursday.
The spikes in the OI on weekends confirm that demand for RWA perpetuals is redirected to Hyperliquid when traditional markets are closed.
Furthermore, the increase in Crude Oil trading volume to $1.17 billion on Hyperliquid indicates that the demand is mainly driven by oil.
Thanks to the growing demand, Hyperliquid remains the leading protocol by revenue, aside from stablecoins. The platform generated $54.39 million in revenue over the last 30 days, outperforming Pump.fun and the Tron ecosystem.
HYPE eyes $40 despite the slight retracement
The HYPE/USD 4-hour chart is extremely bullish and efficient as the coin has outperformed the broader crypto market since the start of the week.
It is currently trading at $37 after overcoming the $35.47 resistance level on Thursday. The near-term bias has turned bullish as HYPE accelerates away from the upward-sloping 50-, 100-, and 200-day Exponential Moving Averages (EMAs).
If the rally continues, HYPE will likely test its first major resistance at the $40 psychological level. A sustainable daily candle close above this resistance could open the way toward $48.91, which capped the price in October.
The momentum indicators are also extremely bullish at the moment. The Moving Average Convergence Divergence (MACD) rises firmly above its signal line, suggesting buyers control the trend.
The Relative Strength Index (RSI) at 73 shows that HYPE is approaching the overbought territory if the bullish bias remains.
However, if the rally ends, HYPE could retest the resistance-turned-support area at $35.47 in the near term.
A decisive break below this support would bring the 200-day EMA at $32.06 into focus. Deeper downside protection lies near the 100-day EMA at $30.83.
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