Hyperliquid (HYPE) Price Outlook: Token surges as HIP-4 proposal boosts prediction market

• Hyperliquid rises 8% above its 200-day EMA on Tuesday, extending Monday’s nearly 9% advance.
• The project unveiled plans to support outcome trading through the HIP-4 proposal.
• Retail participation picks up as HYPE futures Open Interest posts double-digit gains to around $1.85 billion.

Hyperliquid (HYPE) continued its recovery on Tuesday, rising 8% at the time of writing, fueled by optimism surrounding the HIP-4 proposal aimed at introducing outcome trading, including prediction markets and bounded options contracts. Growing retail engagement with the decentralized exchange and its native token is reflected in a more than 25% jump in HYPE futures Open Interest, signaling strong capital inflows. From a technical perspective, HYPE maintains a bullish bias, with strengthening buying pressure and improving trend momentum.

Hyperliquid rekindles retail interest with prediction market plans

Hyperliquid unveiled the HIP-4 proposal on Monday during early US trading, outlining plans to introduce prediction markets and fixed-range options contracts in an effort to compete with established platforms such as Polymarket and Kalshi. Retail participation in prediction markets has surged amid heightened volatility across global financial markets and geopolitical developments.

The latest initiative marks an expansion of the Hyperliquid exchange beyond commodity trading, which was introduced under the HIP-3 proposal, and underscores the platform’s ongoing development aimed at better meeting trader demand.

CoinGlass data shows that HYPE futures Open Interest (OI) jumped 27% over the last 24 hours to $1.84 billion, indicating significant inflows. Typically, such a large capital inflow in futures markets during an uptrend indicates an upside bias among traders.

A massive wipeout of short sellers over the last 24 hours, evidenced by short liquidations of $31.69 million outpacing long liquidations of $1.58 million, corroborates the upside bias in HYPE futures. Additionally, the funding rate of 0.0046% signals a bullish interest among traders. 

Technical outlook on Hyperliquid: Can HYPE reach the $50 level?

Hyperliquid rebounded from the 100-day Exponential Moving Average (EMA) at $30.61, posting gains of around 24% so far this week. At the time of writing on Tuesday, HYPE is up 14% on the day and has reclaimed the 200-day EMA at $32.89. The next upside hurdles are seen at $35.51 — aligned with the August 2 low — and the R1 Pivot Point at $37.07.

The broader technical structure reinforces a strong recovery bias, with longer-term EMAs trending higher above shorter-term averages on the daily chart. A sustained close above $37.07 could pave the way toward the R2 Pivot Point at $43.15, followed by a key resistance zone near the $50.00 psychological mark.

Momentum indicators also favor further upside. The Moving Average Convergence Divergence (MACD) continues to strengthen, with histogram bars expanding above the zero line, signaling accelerating bullish momentum. Meanwhile, the Relative Strength Index (RSI) stands at 71, entering overbought territory and reflecting strong buying pressure.

On the downside, a failure to sustain a move above the 200-day EMA at $32.89 would undermine the bullish outlook and could trigger a pullback toward the 100-day and 50-day EMAs, located at $30.62 and $28.03, respectively.

Sources: Vishal Dixit