Hyperliquid Nears $30 Breakout as Retail Investors Stay on Sidelines

▲ Hyperliquid (HYPE) / Source: X     ©

Hyperliquid (HYPE) is continuing its rebound ahead of the $30 resistance level, but declining open interest signals growing risk aversion among retail investors, drawing market attention to the possibility of a “quiet breakout.”

According to investment media outlet FXStreet on February 20 (local time), HYPE rebounded დაახლოებით 1% from the previous day, approaching the $30 mark. However, this recovery has not been accompanied by broad market conviction. Open interest in the HYPE futures market continues to decline, indicating that investors are reducing positions or lowering leverage amid a risk-off stance.

Data from CoinGlass shows that HYPE futures open interest stood at $1.3 billion as of Friday, extending its recent downward trend. The decline is attributed to forced liquidations and voluntary position reductions, signaling weakening short-term demand. Following the introduction of tokenized asset futures trading through the HIP-3 update, the market is awaiting HIP-4, but no clear catalyst has emerged yet.

Technically, after rebounding from the $28.15 level (S1 pivot), HYPE is testing the 200-period exponential moving average (EMA) at $29.50 on the four-hour chart. The price remains below both the 50-period and 200-period EMAs, maintaining an overall bearish bias. On the upside, key resistance is identified around $30, where the 50-period EMA at $29.95 converges with a descending trendline connecting the February 2 and February 16 highs.

A daily close above $30 could open the door for an additional gain of about 10% toward the R1 pivot at $33.40. The Moving Average Convergence Divergence (MACD) indicator has crossed above the signal line on the four-hour chart, suggesting a recovery in short-term bullish momentum, while the Relative Strength Index (RSI) has risen to 48, indicating easing selling pressure.

Conversely, failure to hold the $28.15 support level could expand losses toward the S2 pivot at $25.60. Ultimately, whether HYPE can break above $30 is expected to serve as a watershed for a short-term trend reversal.

*Disclaimer: This article is for investment reference purposes only and we are not responsible for any investment losses resulting from its use. The content should be interpreted for informational purposes only.*