Hyperliquid grinds above $40 amid faltering social dominance

fxstreet.com 2 h

Analytics

Hyperliquid ($HYPE) trades around $42 at press time on Monday, maintaining a lifting-off phase from an ascending trendline. Retail interest in the Decentralized Exchange (DEX) is cooling as social dominance fades, while the $HYPE futures see an increase in Open Interest and funding rates, signaling leverage-linked positional buildup.

Hyperliquid’s retail strength is in limbo

The social buzz surrounding Hyperliquid, a DEX providing 24/7 access to Oil futures trading, is fading amid US-Iran efforts to reach a peace deal. Santiment data shows Hyperliquid’s social dominance is down to 0.137% from the March 30 spike of 0.688% seen during the peak of the US-Iran conflict.

$HYPE Social dominance chart. Source: Santiment

On the derivatives side, short-term positional buildup is seen in the $HYPE futures market as Open Interest (OI) and funding rates surge. CoinGlass data shows the $HYPE OI is up roughly 3% over the last 24 hours, reaching $1.66 billion, indicating a rise in the notional value of outstanding $HYPE contracts.

Meanwhile, the funding rate stands at 0.0077%, which has remained mostly positive over the last month, reflecting traders' leverage-linked bullish interest.

$HYPE derivatives data. Source: CoinGlass

Technical outlook: Will $HYPE sustain above $40?

Hyperliquid recovery contracts between two converging trendlines on the daily chart, which form a rising wedge pattern. $HYPE extends above the 50-day and 200-day Exponential Moving Averages (EMAs) at $38.98 and $34.90, respectively.

The Relative Strength Index (RSI) is at 57 on the daily chart, reflecting a positive but not overbought momentum. Meanwhile, the Moving Average Convergence Divergence (MACD) is rising toward the signal line, indicating the downside momentum is waning.

The R1 Pivot Point at $43.71 caps the short-term recovery in $HYPE from the support trendline, serving as the immediate resistance and guarding the overhead trendline near $46.80.

Hyperliquid remains above the rising trendline support at around $41.21, suggesting the broader uptrend is intact. A close below this level would expose the 50-day EMA at $38.98, with the 200-day EMA at $34.90 reinforcing a deeper but still important demand zone if a larger pullback unfolds.

(The technical analysis of this story was written with the help of an AI tool.)