Key Points

• HYPE rose by 1.9% in the past 24 hours, after rebounding from a support level around $75.
• The token needs to break above $83 in order to strengthen the market's belief in its recovery.
• If it falls below $75, the price may face the risk of dropping to around the 200-day moving average of $67.50.

The HYPE token of Hyperliquid has risen by 1.9% in the past 24 hours. During this round of adjustment that began at the end of September, HYPE once touched a support area of around $77, which provided buyers with an opportunity to potentially stop the continuation of the downward trend.

The key test at hand is at $83. If the price breaks above this level, the short-term technical outlook will improve, and it may bring the higher target of around $89 back into focus.

HIP-3 Provides Support for Trading Activities

Despite a broader decline in the overall open interest contracts, the HIP-3 market trading activities of Hyperliquid still remain relatively resilient.

According to the analysis provided in the text, the total amount of open contracts on the Hyperliquid blockchain has decreased by about 11% from its peak of $9.1 billion on September 13th. In the past few weeks, the decline in the HIP-3 market has been relatively more moderate.

HIP-3 Allows the establishment of markets for assets other than cryptocurrencies, including stocks and commodities. According to the data from Hyperliquid Stats, the weekly trading volume for the week ending October 4th was 12.4 billion US dollars, which increased to 19.6 billion US dollars in the following week, representing a growth of about 58%.

This growth indicates that the trading activity in these markets is stronger, but the volume of transactions alone is not sufficient to prove how much demand it has created for HYPE.

As the Federal Reserve is about to announce its interest rate decisions and subsequent guidance, the market may face volatility.

CME FedWatch Data shows that the probability of a rate hike at this meeting is 9%. The data also indicates that more than three-quarters of the analysts surveyed expect a rate hike in December.

Higher inflation readings and oil prices above $100 per barrel have increased market uncertainty about the future path of monetary policy. If policy prospects become more restrictive, it may dampen risk appetite; if the guidance is seen as less aggressive, it could provide some relief.

However, as new information emerges, both the implied probabilities in the market and analysts' expectations can change rapidly.

Hyperliquid Technical Prospects: HYPE Needs to Reach $83 Again

HYPE rebounded from $75, providing initial signs of demand, but for buyers, the resistance around $83 remains the more crucial level.

If the price continues to stay above $83, it will strengthen the belief that "the pullback is giving way to a recovery." If this momentum persists, the analysis provided in the text suggests that around $89 could be a short-term target.

The Relative Strength Index ( RSI ) is currently at 39, which is below the neutral level of 50, indicating that sellers still hold the advantage. This indicator is approaching its signal line, but a single crossover is not sufficient to confirm a trend reversal.

If HYPE falls below $75, the next technical support level to watch out for is the 200-day moving average around $67.50.