- Hyperliquid (HYPE) price has plunged to approximately $39.48 during the downward momentum in the overall crypto market following the Federal Reserve’s decision to hold interest rates steady
- Despite the downfall in the token’s price, the platform is showing massive growth with S&P 500 perpetual contracts reaching $215 million through a TradeXYZ partnership
- The blockchain has reached a new achievement with open interest across HIP 3 markets surging to $1.4 billion
Amid the correction in the overall crypto market, Hyperliquid (HYPE) price witnessed a major drop on Thursday, forcing its value to plunge below $40 with an over 6% drop.
According to CoinMarketCap, Hyperliquid (HYPE) is revolving around $39.48 with a market capitalization of $10.14 billion. The daily trading volume is hovering around $440.48 million.
Hyperliquid (HYPE) Token Loses Value, Perpetual Trading Volumes Surge
This drop in Hyperliquid (HYPE) came after the FOMC meeting on March 18, where the Federal Reserve stated that it will hold interest rates steady in the range of 3.5% to 3.75% instead of providing the rate cut many investors expected.
Apart from this, the recent escalation in the war between Israel, the U.S., and Iran has created shock in the financial market, along with the crypto market. Major cryptocurrencies reacted similarly, with Bitcoin experiencing modest losses near its recent trading range and Ethereum facing sharp downward pressure around $2,000 as traders reduced exposure to riskier holdings.
On March 19, the Bitcoin (BTC) price plunged below $70,000 after surging above $74,000. In this downward pressure, the HYPE token pulled back the platform, which recorded impressive growth in specific perpetual futures, including the newly launched S&P 500 perpetual contracts that accounted for $215 million in volume or 5.5% of total platform activity through a licensing partnership with TradeXYZ.
Oil perpetuals are showing a sharp growth with more than $1.2 billion in 24-hour trading volume amid the Iran conflict that soared crude oil prices above $105 per barrel and created strong demand for constant trading outside traditional market hours.
Real-world asset-related perpetuals also contributed in a great manner as open interest across HIP 3 markets surged to a record $1.43 billion. This is showing growing institutional and retail interest in tokenized indices and commodities despite the short-term token price drops after the Fed announcement.
According to our Hyperliquid price prediction, the HYPE token is facing selling pressure due to various macroeconomic factors and geopolitical conditions. The Relative Strength Index is hovering around the mid-40 range, which shows that the token has lost some buying momentum. However, it is far away from deeply oversold territory.
At the same time, the Moving Average Convergence Divergence indicator is showing a bearish pattern because its lines have crossed downward, which highlights slowing upward pressure. HYPE is currently trading below its shorter-term moving averages, while the longer-term trend lines are providing overhead resistance. It confirms that the current direction is highly volatile.
(Source: Crypto Tony on X)
Hyperliquid is currently holding a clear support level at $38, where buyers have previously injected money into it to avoid further decline in its price. At the same time, there is a strong resistance at around $42 to $43. If it crosses this mark, it would give early signs of recovery.
Hyperliquid has recently launched official S&P 500 perpetual futures through a partnership with TradeXYZ and S&P Dow Jones Indices, which allows qualified global investors to trade anytime with leveraged exposure to the index.
Amid the ongoing tension in the Middle East, oil perpetuals have seen record activity with daily volumes surpassing $1 billion. Similarly, real-world asset trading has reached new highs with open interest surpassing $1.43 billion across HIP 3 markets.
Credit: Source link