Hyperliquid rose more than 8% on Thursday as demand for oil futures on the platform remained steady.
Conclusion
- The price of Hyperliquid hit a four-week high of $37.3 on Thursday, driven by increased trading activity for oil perps on the derivatives platform.
- HYPE also confirmed a bullish reversal pattern on the 4-hour chart.
According to crypto.news, on Thursday, March 12, the price of Hyperliquid (HYPE) rose 8% to reach a 4-week high of $37.3. At this price, the token is 45% higher than its February low and 81% higher than its lowest point this year.
The jump in the price of HYPE coincided with an increase in trading volume, which increased by 42% in the last 24 hours to about $437 million. Its market capitalization was 8.86 billion dollars.
CoinGlass data shows that its open interest has increased by 10%, suggesting that the main catalyst for its recent gains has come from the derivatives market and traders opening more positions in the futures market.
Much of this increase came from activity in energy markets, particularly WTI perpetual, which tracks West Texas Intermediate crude. The price of oil recently reached the maximum of the last 4 years against the background of geopolitical tensions in the Middle East with the company of America, Israel and Iran.
Reports indicate that Iran has threatened to close the Strait of Hormuz, a key maritime hub. Iranian officials have indicated that they are moving from reciprocal responses to continuous pressure as they try to push oil prices above $200.
Investors are concerned about rising inflation as a result of rising oil prices. However, derivatives traders were quick to take advantage of the volatility. It is worth noting that WTI oil futures became the most active HIP 3 contract on the platform, even surpassing precious metals such as gold and silver, which previously dominated activity.
During this period, open interest in the oil-related contract also increased significantly. At the same time, the HIP 3 Perpetual Unauthorized Market in Hyperliquid recorded more than $1.2 billion in total open interest.
In addition to the energy sector, Hyperliquid prices also seem to have grown as traders turn to the platform as a 24/7 place to speculate on geopolitical developments, especially when traditional exchanges like the CME and ICE are closed on weekends or after hours.
On the 4-hour chart, the price of Hyperliquid confirmed the breakout of the inverse head and shoulders pattern formed since mid-February this year. When such a pattern is confirmed, it usually indicates an upward trend. As for Hyperliquid, it seems to have reinforced the uptrend.
Thus, HYPE is likely to continue its upward trend from the psychological resistance level of $40 to $41.7, the target is calculated by adding the height of the upside head and shoulders to the price point where the pattern is confirmed.
The MACD indicator showed that the bulls are still in control of the market and the MACD lines are trending up and above the zero line. At the same time, the Chaikin Money Flow Index showed a positive reading of 0.16, indicating that capital is entering the market and helping to maintain the continued upward momentum.
Disclosure: This article does not provide investment advice. The content and materials on this page are for educational purposes only.
