Hyperliquid HYPE Sparks Recovery Momentum While Traders Stay Alert

TL;DR

• Hyperliquid (HYPE) has surpassed its 200-day EMA and trades at $38.28 after a modest 0.6% increase, while exchange activity remains limited.
• Open interest has dropped more than 50% since October 9, reflecting risk aversion following the $19 billion flash crash.
• The Hyperliquid Assistance Fund purchased 33.53 million HYPE tokens for $1.29 billion; the recovery will depend on renewed retail interest and maintaining key technical support levels.

Hyperliquid (HYPE) shows signs of recovery after weeks of volatility, although investors remain cautious.

The token has managed to climb above its 200-day exponential moving average, a crucial technical level, but the recent gain has been modest: according to CoinMarketCap, HYPE trades at $38.28, up just 0.6% over the last 24 hours. Selling pressure appears to be easing, but activity on the decentralized exchange remains limited, indicating that demand has not fully returned.

Market Continues to Show Risk Aversion

On-chain data shows HYPE’s open interest fell from $15.1 billion on October 9 to $7.2 billion the following Friday, a drop of over 50%. This decline reflects strong risk-averse sentiment following the October 10 flash crash, which triggered $19 billion in liquidations across the crypto market. Inflows also fell to $4.5 billion by the end of the week as outflows increased, a dynamic that could slow retail participation and limit available liquidity.

To support the price and reduce circulating supply, the Hyperliquid Assistance Fund purchased roughly 33.53 million HYPE, worth $1.29 billion. This revenue-based buyback demonstrates internal confidence in the project and aims to support long-term growth.

Still, the recovery depends on retail traders returning: the latest CoinGlass data shows open interest rose 2.45% in 24 hours, reaching $1.34 billion, a modest rebound that could be enough to sustain short-term momentum.

Technical Analysis of Hyperliquid

Technically, HYPE faces several challenges ahead. Holding above its 200-day EMA at $38 opens the path toward the 100-day EMA at $43 and pivot point resistance near $48. Indicators such as the MACD suggest a potential bullish crossover, while the RSI has risen to 42, indicating selling pressure is easing. However, losing support at $38 could push the token back toward $28, the next key support level.

Hyperliquid shows signs that selling pressure is moderating and that the internal fund’s intervention has stabilized the market. Still, establishing a sustained bullish trend will depend on renewed retail participation and the token maintaining key levels in its technical structure