The HYPE Token from Hyperliquid has recently dropped sharply by 40%. However, this altcoin is showing signs of recovery.

Traders are increasingly optimistic about HYPE, with many believing it can recover its recent losses. This new confidence, supported by positive market movements, has sparked hope for price recovery.

Hyperliquid Finds Strong Support

In the past 24 hours, Hyperliquid's Open Interest has increased by an additional $44 million, raising the total to $428 million. This increase following a recent price surge has added momentum to the ongoing recovery.

The growth in Open Interest indicates traders are increasingly confident in HYPE's potential price increase. This interest has driven optimism among investors and traders, with many seeing it as a sign of further growth.

As a result, there is new enthusiasm among HYPE enthusiasts who believe the altcoin is well-positioned to regain its lost value. This positive sentiment could contribute to continued price growth, especially as market conditions remain favorable for recovery.

Hyperliquid's overall macro momentum has shown significant improvement in recent days. Critical technical indicators, such as Moving Average Convergence Divergence (MACD), reflect a shift from a downward trend to an upward trend this week.

This change marks the end of a month of price decline and signals potential for further growth momentum.

As upward price momentum increases, it provides HYPE with the necessary space to continue recovering. The change in MACD reflects a positive shift in market sentiment, suggesting the altcoin may be in a stronger position in the future.

HYPE Price Faces Barriers

HYPE is currently trading at $16.10, up 14% in the past 24 hours. The altcoin is just below the $16.50 resistance level, having recovered approximately half of its recent 40% drop. This price movement suggests Hyperliquid has significant growth potential.

With the current momentum, there is a possibility that HYPE will break through the $16.50 threshold and continue its upward trend. If this occurs, the altcoin could move towards $19.16, potentially reaching $20.00 in the near future.

However, if the $16.50 resistance is too strong, HYPE may struggle to maintain its upward momentum. In this case, the price could drop to $13.44, negating the price increase prospects and erasing recent gains.