Hyperliquid ( HYPE ) bounces back strongly as selling pressure weakens

Hyperliquid (HYPE) is bouncing back, approaching the 200-day exponential moving average (EMA) — a level considered an important trend indicator — after three consecutive recovery sessions. As of the time of writing on Monday, HYPE recorded a 3% increase, amid technical signals and derivative data indicating that selling pressure is gradually easing.

However, the decrease in trading volume on Hyperliquid's perpetual DEX indicates that the demand from traders is still not strong enough to drive a breakout for the project's native token price.

The Hyperliquid network decline signals a slowdown in user activity

Hyperliquid network data shows that traders in the cryptocurrency market remain cautious after the rapid crash on October 10 that led to 19 billion USD being liquidated.

According to official data from Hyperliquid, the total open contract value (OI) on this platform reached 7.20 billion USD on Friday, a sharp decrease from the level of 15.10 billion USD on October 9. This decline of over 50% reflects the “risk-averse” sentiment among traders, which could negatively impact the demand for Hyperliquid and the native token HYPE.

The inflow of capital has also dropped significantly, indicating a decline in user activity. Data shows that the continuous outflow of funds over the past week has pulled the total accumulated inflow down to 4.50 billion USD on Friday. If the downward trend of OI continues along with the increased outflow of capital, Hyperliquid may face serious issues regarding user engagement.

On-chain data of Hyperliquid | Source: HypurscannConversely, the Hyperliquid Assistance Fund (Hyperliquid Assistance Fund) has repurchased a total of 33.53 million HYPE tokens worth over 1.29 billion USD. This buyback trend based on the revenue model indicates the inherent confidence in the project while reducing the circulating supply to stimulate demand.

Hyperliquid Support Fund | Source: Hypurscann## Retail investor interest has surged, expecting the bounce back to continue.

Although user activity shows signs of slowing down, the new wave of interest from retail investors in HYPE tokens reflects an increasing confidence in the recovery potential of this cryptocurrency.

According to data from CoinGlass, the total open contract value (OI) of HYPE has reached 1.34 billion USD on Monday, an increase of 2.45% in just 24 hours. This figure indicates the enthusiastic sentiment and willingness to take on higher risks among traders, as they continuously open more buy positions and ramp up leverage to capitalize on potential price increases.

Hyperliquid's derivative data | Source: Hypurscann## Hyperliquid bounces back above the 200-day EMA, bulls targeting 48 USD

HYPE has extended its upward momentum for the third consecutive day, currently trading above the $38 mark and has broken through the 200-day EMA – an important trend line. If the price maintains a solid close above this level, HYPE could extend its bounce back towards the 100-day EMA at $43, before testing the important Pivot Point level at $48.

The current increase may also weaken the bearish cross signal forming between the 50-day EMA and the 100-day EMA, while reinforcing the short-term technical outlook.

HYPE/USDT daily chart | Source: TradingViewOn the daily chart, momentum indicators indicate that selling pressure is easing: MACD is approaching the signal line, signaling the potential for a bullish cross ( – a sign that often confirms the start of a new uptrend.

At the same time, the RSI index has bounced back to 42, escaping the oversold zone, indicating a significant weakening of selling pressure and a gradual return of buying confidence.

However, if HYPE cannot hold above the 200-day EMA at 38 USD, the risk of a pullback to the Pivot Point S2 support area around 28 USD will increase.

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