HYPE is about to conquer the 45 USD mark amidst a strong bullish wave.

Hyperliquid (HYPE) is trading at $40.00 at the time of writing this article on Friday, continuing the bullish wave spreading across the crypto market. Attention towards the native token of the (DEX) decentralized exchange is also increasing significantly, as evidenced by the open interest (OI) of futures contracts, which currently maintains an average of 1.37 billion USD.

Hyperliquid bullish as demand from retail investors returns

The HYPE derivatives market is maintaining stability, as evidenced by the open contract (OI) of the futures contract recovering to 1.37 billion USD, up from around 1.27 billion USD last Saturday. Although the increase is not substantial, it reflects a subtle shift in sentiment from bearish to a more positive trend.

Previously, OI peaked at 2.59 billion USD just a few days before Hyperliquid set a historic record at 59.57 USD on September 18, indicating stable demand from retail investors and confidence in the market's recovery.

Open contract of HYPE | Source: CoinGlassIn the past two weeks, Hyperliquid has experienced significant volatility, fluctuating between the October low of 27.50 USD and the resistance level of 44.00 USD, which was tested on October 13. Data from CoinGlass shows that the average funding rate is at 0.0318% at the time of writing, after plunging to -0.0102% on Sunday and -0.0386% on October 16. The funding rate reflects the level of interest from traders; the stable bullish trend indicates that they are increasingly wanting to hold long positions as market confidence is bolstered.

Funding rate of HYPE | Source: CoinGlass Concurrently, the risk appetite for Hyperliquid's DeFi products has also increased, as reflected in the total value locked (TVL) of the protocol rising to 2.17 billion USD, marking a 4.4% increase in just 24 hours according to DefiLlama. Investors are shifting assets to staking protocols for long-term holding and rewards, demonstrating confidence in the token and the sustainable development prospects of the Hyperliquid ecosystem.

TVL of HYPE | Source: CoinGlass## Technical Outlook: Can Hyperliquid maintain its recovery momentum?

Hyperliquid is recording a trading level above 40.00 USD on Thursday, solidly supported by the (EMA) 200-day moving average at 36.11 USD. The engulfing bullish candle on the daily chart clearly reflects the positive sentiment enveloping the crypto market.

The bullish prospects of Hyperliquid are further strengthened by strong buy signals from the MACD (Moving Average Convergence Divergence) indicator along the time frame. If the MACD (green) line continues to stay above the signal (red) line, investors will be ready to increase their risk appetite, fueling the rise.

HYPE/USDT daily chart | Source: TradingViewThe relative strength index (RSI) has now rebounded to 47, indicating that bullish momentum is gradually becoming stronger. As the RSI approaches the overbought zone, this will confirm a significant shift from a bearish outlook to a technical bullish trend.

A closing session above 40.00 USD will reinforce the “risk-on” sentiment, paving the way for a potential breakout beyond the 45.00 USD mark. Other important resistance levels that traders need to pay attention to include the 100-day EMA at 42.58 USD and the 50-day EMA at 43.29 USD, where the upward momentum may slow down. Taking profits at these levels could pull the price back below 40.00 USD before Hyperliquid seeks liquidity for the next breakout.

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