Hyperliquid Price News: HYPE Breaks Above $40 – Can The Rally Keeping Going?

This layer-one decentralized trading platform has experienced a wave of strong positive momentum lately as trading activity has exploded since late April when the market started to recover from a four-month downtrend.

Recently, the project sent comments to the Commodity Futures Trading Commission (CTFC) as the institution sought the opinion of different key players in the trading finance space about 24/7 futures markets and decentralized exchanges.

Meanwhile, in late May, the platform reached a new record in open interest for its perpetual futures contracts at $10.1 billion while its total value locked (TVL) in USDC reached $3.5 billion.

HYPE Keeps Making New All-Time Highs Every Week

Hyperliquid’s market share in the futures trading market has been rising rapidly. The platform recently processed daily trading volumes of $11 billion in late May. This places Hyperliquid at the fifth place in daily trading volumes for derivatives.

Although the protocol would still need to triple its daily volumes to dethrone Bitget from its fourth place in this particular segment, the platform has been growing rapidly and may come close to CEX volumes in just a few years if it manages to maintain its operational integrity.

Looking at the daily chart, the price decisively broke above the $28 resistance in late May and has not retested this key level yet, meaning that buying pressure has been quite strong lately as HYPE keeps making new all-time highs.

The $40 level has also been broken this week and this is now the key support to watch in case of a pullback. This level could provide a strong entry for late buyers but it would be the riskiest option of all as momentum indicators have already reached extreme readings.

The daily Relative Strength Index (RSI) currently sits at 73.9, meaning that the token has entered overbought territory again.

This is the third time in just a month that HYPE hits overbought in the daily RSI. This exacerbates the risk of a strong pullback as market makers could push the price lower to unlock the significant liquidity that sits below some key levels like $40 and $30.

A retest of the $28 level could provide a great late entry after HYPE’s strong push to a new all-time high.

Late Entries at $28 Provide the Highest Risk-Reward Ratio

In our previous Hyperliquid price prediction, we targeted a retest of the $36 area as a first milestone as long as the $30 support held its ground. This target was reached just a day after that article came out.

However, the price has now entered uncharted territory. The best alternative at this point for late entries is to wait for a pullback and aim for the nearest higher high.

The chart shows the kind of move we would like to see moving forward for a solid late entry. If the $28 level holds, this would confirm a bullish outlook and a retest of the $40 level shortly afterward.