The cryptocurrency market has been volatile over the past few days due to the ongoing conflict in the Middle East. 

However, Hyperliquid’s HYPE has added 20% to its value in the last seven days, outperforming other major cryptocurrencies in the top 20. 

The rally comes amid growing demand for commodities fueled by the ongoing US-Israel strikes on Iran. 

Risk-off sentiment drives the nudge investors to high-demand commodities such as oil, gold (XAU), silver (XAG), and their tokenized versions on Hyperliquid. 

HYPE is trading at $32 per coin, up 20% in the last seven days.

The rally is fueled by a sharp surge in demand for commodities such as Crude Oil and safe havens like Gold and Silver. 

Hyperliquid, a Decentralized Exchange (DEX) that operates 24/7, has become a hub for trading commodities. 

Hyperliquid Improvement Protocol 3 (HIP-3) allows users to build futures contracts for a deposit of 500,000 HYPE tokens. 

According to CoinGlass, the Open Interest (OI) on HIP-3 stands at $1.29 billion as of Wednesday, after reaching a high of $1.13 billion on Saturday.

Furthermore, the consistent netflows and the highest fee collection among top protocols indicate strong demand for Hyperliquid.

Data obtained from Artemis shows that Hyperliquid generated $1.6 million in fees over the last 24 hours, outpacing Tron (TRX) with $703,500.

In addition to that, Hyperliquid ranks highest among chains based on bridged netflows, with $14.4 million in the same time period, followed by Polygon with $11.3 million.

The funding rate for HYPE reads 0.0019%, up from -0.0032% earlier in the day, suggesting persistent bullish interest.

The HYPE/USD 4-hour chart is bullish and efficient as the coin outperformed Bitcoin and other major cryptocurrencies.

It recently extended gains above its 200-day Exponential Moving Average (EMA) at $32.13.

The momentum indicators have flipped bullish, indicating that buyers could be prompted to push HYPE’s price higher in the near term. 

The Moving Average Convergence Divergence (MACD) extends above its signal line on the 4-hour chart after a crossover on Sunday, indicating increased bullish momentum. 

Furthermore, the Relative Strength Index (RSI) is at 61 on the same chart, indicating firm buying pressure, with further upside on the cards before hitting the overbought region.

If the rally continues, HYPE could target the $35.47 resistance level, marked by the August 2 low, which previously capped gains in early February. 

HYPE breaking above this level could allow the bulls to target the $49-$50 supply zone, last tested in late October.

However, if the market undergoes a correction, HYPE could retest the 200-day and 50-day EMAs at $32.13 and $29.46, respectively, in the coming hours or days.

These support levels could limit downward movement in the near term.

The post HYPE soars 20% on commodities demand amid US-Iran war appeared first on Invezz

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