Hyperliquid price forms a bullish flag as golden cross looms, will it breakout?

Hyperliquid price is close to confirming multiple bullish patterns as futures traders show increased interest in the token.

According to data from crypto.news, Hyperliquid (HYPE) price was trading at $36.9, up 22% over the past month and 78% higher than its year-to-date low.

Hyperliquid price rallied as it witnessed a massive surge in real-world asset trading volumes.

Notably, following the implementation of HIP-3, which expanded the protocol capabilities, investors can now trade decentralized perpetual contracts on commodities like gold, silver, and crude oil.

Amidst escalating tensions in the Middle East, a massive jump in volume was observed in Hyperliquid’s 24/7 crude oil perpetuals, which topped $1 billion in a single day in March.

Unlike traditional markets, Hyperliquid provides round-the-clock access to its commodity markets, making it a pressure valve for macro traders amidst geopolitical events that often unfold over the weekend.

Furthermore, the project’s expansion into prediction markets from its introduction of event-based contracts has added another layer of utility and attracted fresh participants who can now trade on the outcome of real-world events natively alongside their futures positions.

In the last 24 hours, open interest on Hyperliquid hit over $1.61 billion. A surge in open interest suggests more active participation from traders and is a sign that the current trend has significant backing.

The HYPE token has also benefited from increased trading volumes. Trading volumes on the platform have hit a record high of over $2.4 billion.

As Hyperliquid’s Assistance Fund uses up to 97% of protocol fees to buy back and burn HYPE tokens, the latest surge has significantly increased the burn rate of tokens and hence has helped drive the asset price higher through deflationary pressure.

On the daily chart, Hyperliquid price has formed a bullish flag pattern after a steep vertical move known as a pole, followed by a brief period of consolidation. A bullish flag is one of the most well-known bullish continuation patterns in technical analysis.

It is also close to confirming a golden cross, which occurs when the 50-day SMA crosses over the 200-day SMA. Traders view such pattern confirmations as a major signal of long-term trend reversal and sustained buying momentum.

Hence, if a golden cross is confirmed, Hyperliquid price would likely confirm the bullish flag pattern, which would propel it toward the upside of $44, the highest point of the flag formation. A breakout above it could set the stage for a push toward new all-time highs.

On the contrary, if Hyperliquid price drops below the 200-day SMA at $34.8, the bullish thesis would be invalidated and could lead to further downside.