Hyperliquid Price News: After Soaring +55% in April, Can HYPE Climb Back to $30?

The token has been moving closer to its all-time high of $35 after it managed to reverse this year’s strong downtrend in the past few days.

HYPE implemented a previously announced change to its fee structure that will result in lower trading costs for those who stake the token.

This will help attract higher volumes and fee-sensitive users (e.g. high-frequency traders) who will benefit from lowering their operational costs through HYPE staking.

This may explain, to some extent, why HYPE is rising today.

However, data from DeFi Llama indicates that trading volumes across its decentralized exchange (DEX) have been trending lower in the past few weeks, moving from $1.3 billion during the week ended on April 6 to $527 million as of last week.

Similarly, weekly trading volumes for its perpetual futures contracts have moved down from a yearly peak of around $65.2 billion during the week ended on February 23 to just $20.9 billion as of last week.

Despite weakening on-chain data, HYPE has seen its price rise by 55% in the past month.

HYPE is Not Out of the Woods Yet

HYPE found strong support at $10 per coin in early April and started its climb until it broke above its 21-day EMA just a few days later.

Since then, the price has gone up in 14 out of the last 21 trading sessions as bullish momentum has been quite strong.

However, the Relative Strength Index (RSI) has already been moving close to overbought levels, meaning that the rally could soon face an imminent pullback.

Although the price has been rising steadily, it has been moving at a close distance from its 21-day EMA, which raises the odds that a strong pullback could result in a bearish breakout in the near term.

The MACD’s histogram had been trending lower until yesterday when it posted its first higher high in two weeks. This could be an early indication that bullish momentum is regaining steam.

HYPE is still trading below its point-of-control (POC), which currently stands at around $23. When prices are below the POC, bears are still in control of the price action.

Hence, for HYPE to make a strong climb to $23, bulls first need to capture this key threshold as that would mean trading volumes are in their favor and not against the trend, as they are now.

The 21-day EMA is the key support to watch in case of a pullback as the market could take a step back to capture some liquidity before making a move toward the $23 resistance.

Key Support Areas to Watch

Now heading to the lower time frames, bullish momentum seems to have accelerated after the price broke above the $19 resistance. There were multiple retests of this key level that confirmed its relevance for market participants but the price bounced off it multiple times.

The price action is bullish as the 21-hour EMA has stood above the 200-hour EMA at all times. However, same as with the daily chart, momentum indicators are quite stretched so traders should brace for a pullback and take precautions to avoid losing some of the profits they have made with this rally.

The 21-hour EMA or the $19 level are the two key supports to watch if (or when) this pullback occurs. A retrace at this point would provide a much more decent entry price to late buyers who expect that HYPE will climb to $30 in the next few weeks following its daily short-term EMA breakout.