Hyperliquid Price News: HYPE Nears Key Level at $30 – Can It Break to New ATHs?

Hyperliquid (HYPE) has surged by nearly 76% in the past month as the layer-one decentralized trading platform posted a record-high in open interest earlier this month.

According to an X post, the outstanding volume of perpetual futures contracts reached $6.7 billion for the first time on May 12.

What sets Hyperliquid apart from other DEXs is that the platform operates in its own layer-one blockchain rather than relying on networks like Solana or Ethereum.

This allows the project to make the necessary modifications and upgrade to serve its use case – powering a trading platform.

Hyperliquid fees are also considerably lower compared to centralized exchanges. They vary depending on the traders’ 14-day weighted volume and range from 0.0428% to less than 0.01% for premium users.

Staked HYPE Could Add Fuel to the Rally

Recently, the platform unveiled a new rewards system tied to HYPE staking that results in lower trading fees for different tiers.

Fee discounts range from 5% to 40% and they encourage traders to buy and lock in their hype tokens to lower their trading costs.

As more HYPE is staked, the token’s available supply shrinks and this favors a bullish outlook at a point when the market seems to have entered a bullish cycle.

Moreover, HYPE recently started to support deposits in USDT. This also opens up the platform’s door to receive a significant amount of liquidity coming from traders who prefer to operate with Tether instead of Circle’s USDC – the main stablecoin that the protocol supported beforehand.

In the past 24 hours, HYPE has surged by 9.3% and trading volumes have exploded by 21.2%. The token has been experiencing significant demand since the project announced these staking rewards.

Data from Staked Hype indicates that 11 million tokens have already been locked. This still represents a small percentage of the token’s circulating supply of 334 million HYPE. As staked percentages increase, HYPE may experience further upside as liquidity will shrink.

Rally Shows Signs of Exhaustion

Looking at the daily chart, the price has reached a key area we mentioned in our previous Hyperliquid price analysis.

We emphasized that a bullish breakout above $30 would be necessary to push the token to retest its all-time high of $35 in the next couple of weeks.

However, we are not there yet. The price has already retreated once after hitting the $26 level but seems to be breaking out above it during today’s session with moderate trading volumes.

The price action has been quite bullish since a golden cross between the 50-day and 200-day exponential moving average (EMA) occurred in late April.

However, momentum indicators are heavily stretched and this increases the risk of a strong pullback, especially as the price nears this key resistance level at $30.

If such a pullback occurs, the 21-day and 200-day EMA would be the key support areas to watch. Meanwhile, this pullback could occur right after the price breaks out above $30 as it tends to occur as bulls could be eyeing the liquidity that stands above those levels to add more fuel to the rally.

Heading to a lower time frame, the price has broken above a key area of resistance right now during the American session. This is typically a liquidity grab that could be followed by a big drop as momentum indicators are also heavily stretched in this lower time frame.

The 50 and 200-period EMAs are the key levels to watch in this hourly chart if a pullback occurs.