Hyperliquid (HYPE) is the best performer among the top 20 cryptocurrencies by market cap, rising nearly 10% over the last 24 hours.
The rally has helped HYPE overtake Cardano’s ADA to become the 10th-largest cryptocurrency by market cap.
HYPE’s strong performance is supported by robust on-chain and derivatives data, with retail traders largely driving the bullish momentum.
The technical outlook also points to further gains, with the $50 psychological level emerging as a key near-term target.
HYPE hits $40 amid strong on-chain data
HYPE is trading at $40 on Tuesday after gaining nearly 10% the previous day, with the rally primarily driven by strong on-chain and derivatives activity.
CryptoQuant’s summary data supports the positive outlook, suggesting that further upward movement could be on the horizon.
HYPE’s spot and futures markets show large whale orders, cooling conditions, and buy-side dominance—all signaling potential upside.
Derivatives data also reinforce the bullish outlook for Hyperliquid.
CoinGlass data shows HYPE’s Open Interest (OI) rising to $1.67 billion on Tuesday, its highest level since early February.
OI has been steadily increasing since the start of the month, indicating that fresh capital is entering the market.
This influx of capital could help sustain the ongoing rally.
Additionally, Hyperliquid’s funding rates turned positive on Sunday and climbed to 0.008% on Tuesday, indicating that long positions are paying shorts.
Typically, rising positive funding rates point to strong bullish sentiment.
Hyperliquid price forecast: Traders eye $50 level
The HYPE/USD 4-hour chart remains highly bullish, supported by the ongoing rally.
The token broke above the daily resistance level at $36.51 on Thursday and found support around that level the following day.
It gained around 10% on Monday, briefly touching $41 in early Tuesday trading.
HYPE has since stabilized near $40 but could resume its upward move in the near term.
If the current trend holds, HYPE could extend its rally toward the key psychological level of $50.
However, the October 29 high of $49.88 may act as a resistance level, given the concentration of sell orders in that region.
Momentum indicators also point to continued strength.
The Relative Strength Index (RSI) on the 4-hour chart stands at 70, nearing overbought territory and signaling strong bullish momentum.
That said, a short-term pullback within the broader uptrend remains possible, allowing for additional buy orders to be absorbed.
The Moving Average Convergence Divergence (MACD) has formed a bullish crossover, further reinforcing the positive outlook.
While the market is bullish, there is always the possibility of a correction.
If that happens, HYPE could extend its decline towards the first daily support level at $36.51.
An extended bearish condition would allow the sellers to push HYPE’s price down towards the 4-hour Valid Trading Range (VTR) of $33.6, last tested on March 10.
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