Hyperliquid (HYPE) Price Moves Above 200-Day EMA
Hyperliquid (HYPE) price has risen to the 200-day Exponential Moving Average (EMA) after three days of gains. On Monday, HYPE increased by 3%. Technical data shows less selling pressure. However, a drop in decentralized exchange (DEX) activity suggests weak trader demand for HYPE tokens.
Network Activity Shows Decline in User Engagement
Hyperliquid’s network data reveals that traders are cautious after the October 10 flash crash. This crash caused $19 billion in liquidations. Open Interest (OI) on Hyperliquid fell from $15.10 billion on October 9 to $7.20 billion on Friday. This 50% drop signals lower trader confidence and less demand for HYPE tokens.
Last week, consistent outflows reduced cumulative inflows to $4.50 billion. If this trend continues, Hyperliquid may face serious user activity challenges.
Meanwhile, the Hyperliquid Assistance Fund has bought back 33.53 million HYPE tokens, worth over $1.29 billion. This buyback shows the company’s confidence and helps reduce token supply to support demand.
Retail Interest Grows as Traders Expect Gains
Despite lower user activity, retail traders show renewed interest in HYPE. CoinGlass data reports that HYPE’s Open Interest rose 2.45% to $1.34 billion on Monday. This increase suggests traders are taking more risks by opening long positions or using higher leverage.
Price Outlook: Bulls Target $48
HYPE has traded above $38 and the 200-day EMA for three days. A strong close above this level could push the price to the 100-day EMA at $43, then to the Pivot Point at $48.
This recovery may prevent a bearish crossover of the 50-day and 100-day EMAs. Momentum indicators support this view. The MACD is rising toward a bullish crossover. The RSI has moved up from oversold levels to 42, showing less selling pressure.
If HYPE falls below the 200-day EMA at $38, the price could drop to the S2 Pivot Point at $28.
