Hyperliquid Price Prediction: HYPE Spikes 6% as Open Interest Rises Despite Market Sell-off

Highlights:

• The Hyperliquid price is showing signs of life, as it has soared 6.18% to trade at $40.93, despite the market weakness.
• The derivatives market shows an increase in open interest and favourable funding rates, signalling growing confidence. 
• The technical outlook shows a potential breakout to $44-$50 mark if the $41 resistance gives way.

Hyperliquid price has basked in its gains and is currently priced above $41, marking a 6.18% surge in the past 24 hours. The HYPE token has defied the larger crypto market weakness, as its daily trading volume rises 62%. On-chain and derivatives data have a positive perspective as there is an increase in their open interest and favorable funding rates. As the momentum indicators point to a declining bearish pressure, the technical picture is optimistic, which opens the gate to additional rises in Hyperliquid price.

The derivatives data denote a recovery rally of Hyperliquid. OI-Weighted Funding Rate data released by Coinglass indicates that the number of traders who are betting that the price of HYPE will fall is less than the number of traders who believe the price will rise.

The indicator has reversed to a positive percentage of 0.0191% on Tuesday, which means that longs are paying the shorts. In the past, as demonstrated in the chart, when the funding rates reversed from negative to positive, the Hyperliquid price saw a significant rise.

The statistics provided by CoinGlass indicate that the HYPE futures OI increased to $1.78 billion on Tuesday, compared to $1.52 billion on November 12. Further, it has steadily been increasing since then. An increase in OI signals new money in the market and new purchases that may enhance the prevailing HYPE price boom.

Hyperliquid Price Eyes a Breakout Towards $44

The Hyperliquid price chart shows the token trending at $40.93 as the bullish sentiment grows in the market, signaling that a breakout could be imminent. HYPE price action shows a classic descending triangle pattern forming, with the bulls aiming for a breakout above the pattern. 

The price has found support at the 200-day SMA at $40.76 and is consolidating here before launching upward. This is the phase where bulls typically stage a comeback.  If they do, they could push Hyperliquid price past the 50-day SMA at $41 resistance and aim for $44-$50. 

The Relative Strength Index (RSI) sits at 50.79, hovering in neutral territory. The RSI is flattening, signaling that bulls are fighting the bears over the current support level at $40.

Looking at the bigger picture, Hyperliquid’s recent 6% rise shows resilience among the bulls. The resistance of $41 is the next psychological barrier. If broken, the Hyperliquid price could ignite a FOMO frenzy towards $44-$50 soon. However, if bears claw back and the resistance zone proves too strong, support at $40.76 might catch the fall.

Over the next 48 hours, HYPE could climb towards $4 mark if the $1 barrier gives way. If the volume holds, the stretch goal is $50. In the long term, if this breakout rally holds, there might be further gains by the end of the year.