Hyperliquid upgrades its system with 21 permissionless validators – Will HYPE continue to rise?

The price of Hyperliquid (HYPE) rose to $18.45 in Tuesday's trading session, fueled by momentum from the project's announcement of expanding the (validator) program for all network users. Accordingly, the network will support 21 (permissionless nodes), marking a significant step forward in the decentralization roadmap. Some technical signals indicate that the market structure is shifting positively, opening up the possibility that HYPE will maintain its upward momentum and aim for the psychological resistance level of $20 in the short term.

Hyperliquid validators must lock 10,000 HYPE for one year

The Hyperliquid developers have just announced a new update for the validator program on Tuesday, expanding the opportunity for all users in the ecosystem to participate in securing the protocol. Although anyone can register, the system will automatically select the 21 validators with the highest stake to form the core operating group. According to the announcement on platform X, "the delegations from the Delegation Program are expected to start operating in the coming days."

The development team recommends that validators familiarize themselves with the process and technology through the test network (testnet) before moving to the main network (mainnet). At the same time, they also emphasize that "self-delegating 10,000 HYPE will be locked for one year by the protocol." This regulation applies to all validators, including those not part of the officially selected group, so users need to carefully consider their commitment before participating in staking.

Immediately after the above information, the price of Hyperliquid recorded a slight rise, increasing by 1% on the day and reaching $18.45 at the time of writing. Over the past two weeks, HYPE has continued to maintain a strong upward trend, with a value double that of the bottom $9.30 established on April 7.

Derivative data shows increasing interest in HYPE

Interest in this layer 1 token is increasing, as evidenced by data from the derivatives market. According to data from Coinglass, the open interest (OI) has risen by 4% in the past 24 hours, reaching approximately 584 million USD. The OI index represents the total number of derivative contracts that are still in effect and have not been settled, indicating the level of market participation from investors.

The rise in OI for HYPE indicates that capital is flowing more strongly into the market, with the number of open positions increasing. This reflects traders' expectations that the token price will continue to rise, as OI and liquidity grow together.

The long/short ratio is currently balanced at 1:1, indicating that the market is in a state of indecision, with the investment force evenly split between the bullish and bearish sides. However, liquidation data shows that the balance is tipping towards the bulls, as many Short positions continue to be closed. In the past 24 hours, approximately $49,000 of Short positions have been liquidated, significantly higher than the $31,000 from the Long side – a potential signal that selling pressure is weakening and making way for an upward trend of HYPE.

Hyperliquid approaches the $20 mark

After bouncing back from the bottom of $9.30 on April 7th, the price trend of HYPE has changed positively. Currently, this token has broken above the 50-day exponential moving average (EMA) at the level of $16.05 – a signal indicating that buying pressure is increasing.

Not only that, HYPE has also surpassed two key resistance levels on the daily chart, including the upper limit of the accumulation zone and the long-term downtrend line. The RSI indicator currently stands at 64.41, approaching the overbought region, reflecting that the upward momentum is in a strong state.

If the price remains stable on the 100-day EMA at $18.34, this could strengthen investor confidence and provide additional momentum for HYPE to conquer the important psychological barrier of $20.00.

However, the MFI indicator – which measures money flow pressure – is at 79.88, approaching the overbought territory. This indicates that the risk of profit-taking may arise, leading to selling pressure and weakening the short term rise.

In a correction scenario, the 50-day EMA will serve as the closest support zone, helping to limit the possibility of the price returning to the April low.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their own research before making any decisions. We are not responsible for your investment decisions.

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