Hyperliquid (HYPE) has risen by 3% in the past 24 hours as bulls struggle to keep this altcoin above the psychologically relevant $90 threshold.
Yesterday’s inflation data in the United States injected some much-needed volatility into the market and managed to push HYPE to a key buy zone on the 4-hour chart that could have unlocked the necessary liquidity to push the token back to the high 90s.
According to the U.S. Bureau of Economic Analysis, the monthly variation of the Core PCE Price Index stood at 0.2% in August, or 10 basis points below the consensus estimate from analysts for the period.
This resulted in a strong rally across the crypto market shortly after the report was released, as odds of a rate hike in October decreased from around 50% to 37%.
In the case of HYPE, the rally persisted, indicating that the buying pressure remains strong for this token. Hyperliquid continues to be the best-performing project in the top 10, with a 270% year-to-date (YTD) gain.
If the Federal Reserve opts to postpone its next 25bps interest rate increase to December, that could create the necessary conditions for the continuation of the latest rally toward higher price zones.
Volumes Drop, But Open Interest Remains High on Hyperliquid’s RWA Layer
The launch of real-world assets (RWAs) on the HIP-3 protocol managed to drive significant volumes and open interest (OI) toward Hyperliquid.
Users can now trade commodities, indexes, and stocks through this decentralized exchange, as the adoption of TradFi in top jurisdictions in the United States keeps accelerating.
According to data from HyperScreener, weekly volumes for RWAs have been steadily dropping from a recent peak during the last week of July at $37.5 billion to $8 billion last week.
This implies less activity and could result in lower fees for Hyperliquid in the near term. However, data from DeFi Llama indicates that the network’s fees continue to be on an uptrend, closing last month at $72 million for a 7.5% month-on-month jump.
Meanwhile, open interest remains high at $3.9 billion, just 9.3% below the metric’s recent all-time high.
HYPE Offers Attractive 3x Trading Opportunity as Positive Momentum Accelerates
Heading to the 4-hour chart, we can see how HYPE jumped right after hitting the 200-period exponential moving average (EMA) in this lower time frame. The last time this happened, it resulted in a strong 26% spike in the near term.
If we expect a similar move this time, we could see HYPE rising past the $100 mark for the first time in history before the end of the week. This trade offers a 3x risk-reward ratio if the stop price is set below the 200-period EMA.
This is our baseline scenario for the token, especially as positive momentum seems to be accelerating, as indicated by a move above the signal line in the Relative Strength Index (RSI).
