The price outlook for Hyperliquid improves due to an increase in buying demand and user numbers.

Hyperliquid (HYPE) is trading around the 25 USD mark at the time of writing on Monday, thus maintaining an increase of about 3% compared to the previous session. This perpetual contract exchange recorded a short term bounce back in the number of active users, although the total fees collected over the week have dropped to the lowest level since the beginning of the month. In the derivatives market, data shows a return of retail money flow, reflected in the increase in open positions on HYPE futures contracts, while the funding rate is leaning positively, reflecting investors' bullish expectations.

However, the technical picture of Hyperliquid is still not really clear. Selling pressure is showing signs of weakening, but the price bounce back may face many important resistance levels in the short term.

The interest of individual investors is increasing along with the bounce back of users.

Data from Artemis recorded the number of daily active users soaring to 13,800 on Friday, compared to 9,100 on December 6th. This development indicates signs of bounce back in the short term, although it still lies within the context of a prolonged declining trend. In the scenario where the cryptocurrency market stabilizes again soon, this recovery momentum could be reinforced, thereby promoting sustainable growth in user numbers and demand for the Hyperliquid platform.

User activity data of Hyperliquid | Source: ArtemisOn the contrary, data from DeFiLlama shows that total transaction fees collected in the previous week only reached 16.11 million USD — the lowest weekly figure since the beginning of December. This figure reflects that, although user activity shows signs of recovery, the market's willingness to accept risk remains quite cautious, resulting in generated fees not being commensurate.

Data on transaction fees of Hyperliquid | Source: DeFiLlamaNotably, in the derivatives market, the interest of retail investors in the HYPE token is increasing significantly. According to CoinGlass, the open interest (OI) of HYPE futures contracts has reached 1.42 billion USD, up 4.86% in just 24 hours. At the same time, the funding rate remains at a positive 0.0073%, indicating that the bulls are in control, as traders are willing to pay fees to maintain Long positions, reflecting more optimistic expectations in the short term.

Derivative data HYPE | Source: CoinGlass## Hyperliquid bounces back as selling pressure weakens

Hyperliquid (HYPE) is currently trading around the 25 USD mark at the time of writing on Monday, indicating a sideways accumulation state after a consecutive fall lasting 5 sessions last week. At the moment, the nearest resistance zone is identified at the Pivot S1 level around 26.03 USD, above which is the resistance trendline connecting the two peaks formed on 30/10 and 4/12, respectively around the 28.00 USD area.

In a positive scenario, if HYPE breaks decisively above the 28 USD threshold, the bullish momentum could be extended towards the 50-day exponential moving average (EMA) at 32.36 USD – an important technical milestone that could serve as a check on the short term trend.

HYPE/USDT daily chart | Source: TradingViewThe technical signals on the daily timeframe are showing a noticeable weakening of selling pressure. The RSI is currently at 37 and trending upwards, reflecting the price gradually escaping the oversold zone. This development indicates that the previous selling force shows signs of exhaustion, thereby opening up the possibility of forming a short-term bounce back.

At the same time, the MACD line is approaching the signal line, implying the possibility of a bullish crossover in the near future. If confirmed, this will be a signal reinforcing the improvement of trend momentum.

On the contrary, in the case that selling pressure returns, HYPE may retreat to the important support zone ranging from the low of 10/10 to the Pivot S2 point, corresponding to the price range of 20.82 – 20.15 USD, where it is expected to trigger defensive buying pressure.

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