Hyperliquid (HYPE) continued its move near the $30 level on Friday, Feb 27, after rising by 2.25% at press time. This followed an increase in retail participation. Derivatives also contributed to the move. HYPE had shown signs of strength after a volatile start to the week.
HYPE continued its upward move on the 4-hour chart. The asset had moved above its 200-period Exponential Moving Average (EMA) at $29.09. This move had confirmed a breakout from a falling channel pattern. This move had indicated improving sentiment in the market.
HYPE Retests Key Channel Resistance
Analyst CryptoPulse highlighted that HYPE was testing channel resistance. The coin is bouncing from the lower boundary of the descending channel on the daily chart. It was moving towards the trendline at $28-$29. This was a crucial technical level for the coin.
If the coin broke through the channel, there was a chance for a greater target. The next level was between $32 and $34. If the coin is rejected at the trendline, the descending channel would remain valid. The downside was open towards the level between $21.5 and $23.5.
Source: X
Derivatives Show Growth With Rising Open Interest
CoinGlass data shows that there was growing interest in HYPE. The open interest in futures reached $1.15 billion. This was an increase of more than 2% over the past 24 hours.
The funding rate stood at 0.0052%. This suggests that long positions were dominating the market. The rate suggested that traders expected further upside. It also showed a positive bias in the positioning.
Source: CoinGlass
Also Read: HYPE Breaks Out of Falling Wedge, Signals Bullish Reversal Toward $38
HYPE extended its recovery after a drop of 9% on Monday. The recovery was from the S2 Pivot Point at $25.72 on the 4-hour chart. The price has been rising for four consecutive days. It was turning its weekly performance positive by nearly 2%.
The price is rising above the 50-period EMA and the 200-period EMA. This supported the near-term bullish outlook. This confirmed that the price is breaking through a descending trendline resistance.
Immediate resistance levels stood at $31.04 and $33.06. These were marked by the R1 and R2 pivot points. Traders monitored both levels as potential reaction zones. A breakout could extend the ongoing rally.
MACD and RSI Signal Growing Strength
The Moving Average Convergence Divergence (MACD) indicator has moved into a positive zone. Its histogram is expanding above the zero level. This indicated rising bullish momentum after the breakout.
The Relative Strength Index (RSI) is at 64. It’s rising above the middle level with a rising trend. This indicated rising buying activity. It remains below the overbought level.
Source: TradingView
Support areas were still significant in case of a pullback. The 50-period EMA at $28.50 was aligned with the breached trendline. The S1 Pivot Point at $27.37 is a deeper support level. Both zones could cushion declines if the market pulled back.
Also Read: Cardano (ADA) Returns to Top 10 Crypto, Targets $0.3586 Resistance
