- Hyperliquid (HYPE) surged to $40, overtaking Cardano to become the 10th-largest cryptocurrency, driven by strong on-chain and derivatives activity.
- Technical indicators suggest the rally could continue toward the $50 level, though short-term pullbacks remain possible.
Hyperliquid (HYPE) has emerged as the standout performer among the top 20 cryptocurrencies, rallying nearly 10% in the past 24 hours. This surge has pushed HYPE past Cardano’s ADA, making it the 10th-largest crypto by market capitalization and drawing strong attention from retail traders.
Strong On-Chain Data Drives Rally
HYPE’s climb to $40 on Tuesday is largely fueled by robust on-chain and derivatives activity. Data from CryptoQuant highlights rising whale orders, cooling conditions, and buy-side dominance across spot and futures markets. These signals indicate potential further upside as fresh capital enters the market.
Derivatives metrics reinforce this bullish trend. CoinGlass reports that HYPE’s Open Interest (OI) reached $1.67 billion on Tuesday, marking its highest level since early February. This steady increase in OI reflects growing investor confidence and a sustained influx of capital, supporting the ongoing rally.
Funding rates for Hyperliquid have also turned positive, climbing to 0.008% on Tuesday. Positive funding rates suggest long positions are paying shorts, a common indicator of strong bullish sentiment.
Technical Outlook Points to $50
On the HYPEUSD 4-hour chart, technical indicators remain favorable. The token broke above a daily resistance level at $36.51 last Thursday, finding support at the same level the following day. Monday’s 10% gain briefly pushed HYPE to $41 before stabilizing near $40.
Traders are now eyeing the psychological $50 level as the next target. However, the October 29 high of $49.88 could act as a resistance zone due to concentrated sell orders.
Momentum indicators also support continued strength. The Relative Strength Index (RSI) on the 4-hour chart sits at 70, approaching overbought conditions, while the Moving Average Convergence Divergence (MACD) has formed a bullish crossover. These factors suggest HYPE could sustain its rally, though short-term pullbacks may occur, absorbing additional buy orders.
Possible Correction Levels
While the overall trend remains bullish, market corrections are always possible. If HYPE faces selling pressure, the first support level sits at $36.51. A more extended bearish move could push the token toward the 4-hour Valid Trading Range (VTR) at $33.6, last tested on March 10.
Despite potential short-term pullbacks, the strong on-chain activity, derivatives data, and technical indicators make Hyperliquid a cryptocurrency to watch as it aims for $50.
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