After weeks of sideways movement, Hyperliquid has successfully reclaimed the $20 level, indicating a potential shift in market momentum.

Technical Analysis: Hyperliquid Shows Signs of Bullish Momentum

The daily chart reveals a distinct bounce above the middle Bollinger Band, with the price now testing the upper band. The relative strength index (RSI) currently stands at 62.91, reflecting bullish momentum without entering overbought territory. While a clear breakout has not yet occurred, steady trading volume suggests strong support for the recent price move.

The moving average convergence divergence (MACD) remains in a buy zone, and Hyperliquid continues to trade above the 50-day moving average. These indicators point to gradually increasing momentum, although most oscillators remain neutral. If bulls can maintain the price above $20, the next target could range between $21 and $22. However, a rejection at current levels may push the price back toward the $18 zone.

On-Chain Metrics and Market Activity

The recent rebound aligns with a 12% increase in open interest for Hyperliquid, based on market data. Trading volume for April reached $4.01 billion, slightly surpassing March’s $4 billion. However, the total value locked (TVL) in Hyperliquid stands at $289 million—more than 50% lower than its February peak of approximately $700 million. This sharp decline, coupled with a slowdown in stablecoin inflows, could signal reduced user confidence or capital rotation into other projects.

Key Developments Driving Renewed Interest

Recent updates in the Hyperliquid ecosystem may explain the uptick in activity. On April 21, Hyperliquid integrated with Cypher, a web3 payment gateway, allowing users to spend both spot and perpetual balances at over 100 million merchants globally. Cypher’s card is now supported in over 150 countries, with compatibility for Apple Pay and Google Pay. Additionally, Hyperliquid launched a wrapped testnet stablecoin, WHLUSDC, further expanding its use cases.

Upcoming Features and Community Incentives

Looking ahead, Hyperliquid is set to introduce a new fee and staking system on May 5. This update will enable users who stake HYPE tokens to earn trading fee discounts ranging from 5% to 40%. Spot and perpetual trading volumes will be combined for this calculation, with spot volumes given double the weight.

Another significant feature is the introduction of linked staking and trading accounts. While this offers added flexibility, users should note that once accounts are linked, the change cannot be undone. These updates may play a critical role in determining whether Hyperliquid can sustain its position above the $20 mark.

Final Thoughts

As Hyperliquid continues to implement new features and expand its ecosystem, market participants should monitor key technical levels and on-chain data. The upcoming changes, including the staking system and account linking functionality, could significantly influence trader sentiment and price action in the coming weeks.

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