HYPE dips below $28 as bullish bias strengthens: Check forecast

The cryptocurrency market is experiencing a pullback after an excellent start to the week. Bitcoin has briefly dropped to the $91k level, while Ether is trading at $3,200 per coin.

However, HYPE, the native coin of the Hyperliquid DEX, is up 2% in the last 24 hours. It briefly topped the $28 level earlier today but has slightly retraced and is now trading at $27.1 per coin.

The coin could rally higher in the near term as derivatives data suggests a buy-side dominance among traders.

Furthermore, capital inflows into the project align with positive funding rates and increased participation from whales. 

If the market conditions improve, HYPE could rally towards the $30 psychological level in the near term. 

HYPE hits $28 as whale demand increases

HYPE is up by 5% in the last seven days and is now trading above $27 per coin. The positive performance comes as retail demand for Hyperliquid has increased in the last few days. 

According to CoinGlass, the HYPE futures Open Interest (OI) has surged over 7.06% in the last 24 hours, reaching $1.50 billion. The rising OI indicates an inflow of fresh capital into the Hyperliquid ecosystem, including longs and shorts. 

The funding rate has switched positive and now reads 0.0045%, suggesting that most of the fresh capital injected into the market favors a rally over a price decline. 

Finally, CryptoQuant’s data reveal a surge in whale orders thanks to the increasing average order size in HYPE futures. The increasing whale order usually boosts the refreshed trend, suggesting further upward movement in the near to medium term. 

HYPE looks to top the $30 psychological level

The HYPE/USD 4-hour chart is bullish and efficient, with the bulls expecting a breakout above the $30 psychological level in the near term.

The rally to $28 came after HYPE broke above the local resistance trendline connecting the November 18 and December 4 highs, adding 5% to its value since Sunday.

At press time, HYPE is trading at $27.1 after surpassing the $28 level a few hours ago. The coin could embark on a breakout once it tops the 50-day EMA at $29.29, which roughly aligns with the Supertrend indicator line at $29.49.

If the $30 psychological barrier is broken, HYPE could experience further buying pressure in the near term, with the next major resistance level at $34.82.

The momentum indicators on the 4-hour chart have switched bullish, suggesting that the buyers are currently in control of the market. 

The Relative Strength Index (RSI) is at 63 and could enter the overbought region if the buying pressure persists. Also, the Moving Average Convergence Divergence (MACD) is above the zero line, indicating a steady rise in bullish momentum.

However, if the pullback turns into a correction, HYPE could retest the nearest support level at $23.50.