• Hyperliquid price rises toward the $50.00 level, buoyed by a bullish wave in the broader crypto market.
• Native Markets confirms Hyperliquid’s native stablecoin USDH launch on the DEX.
• The MACD sell signal suggests that downside risks may prevail, delaying the anticipated breakout above $50.00.

Hyperliquid (HYPE) is staging a recovery, following five consecutive days of declines, which have been mirrored across the cryptocurrency market since late last week. 

The native Decentralized Exchange (DEX) token trimmed gains by approximately 27.5% from its record high of $59.43 before attempting the current recovery. If risk-off sentiment fades, supported by the launch of the DEXs’ native stablecoin USDH, a steady reversal above the $50.00 level could follow in the coming days.

Native Markets debuts USDH stablecoin on Hyperliquid 

Native Markets, the issuer of USDH, a native stablecoin on Hyperliquid perpetual contracts trading DEX, has officially announced the token’s launch on X. According to the social media post, “USDH is now live for all Hyperliquid users,” featuring a spot order book on HyperCore. The order book comprises $15 million USDH pre-printed over the last 24 hours.

Native Markets emphasized its commitment to the agreed-upon framework, where $0.50 of every US Dollar (USD) earned will be channeled to an Assistance Fund. The contribution begins accruing on Wednesday.

However, the launch is not complete, with Native Markets expected to continue the phased rollout of USDH over the coming months, including HyperEVM integrations and additional features such as USDH as a spot quote asset, native minting on HyperCore, as well as USDH-margined perpetual order books via HIP-3.

Meanwhile, retail interest in HYPE has declined over the past few days, with the futures Open Interest (OI) dropping to $2.17 billion from $2.54 billion on Friday. 

The decline in OI, which represents the notional value of outstanding futures contracts, indicates a lack of conviction in Hyperliquid sustaining an uptrend in the short term. If retail demand remains subdued in the coming days, bulls may struggle to sustain the uptrend, targeting highs above $50.00.

Hyperliquid Futures Open Interest | Source: CoinGlass

Technical outlook: Hyperliquid bulls attempt recovery 

Hyperliquid trades above the 100-day Exponential Moving Average (EMA), which currently holds at $43.94. If bulls sustain the intraday gains on Wednesday, they could break five consecutive days of declines, increasing the probability of a sustained uptrend above the ascending trendline and the critical $50.00 level.

HYPE/USDT daily chart

Still, traders should pay attention to the 50-day EMA at $48.10, a supply-rich level that could delay the breakout. Additionally, the Moving Average Convergence Divergence (MACD) indicator has maintained a sell signal since Sunday, which encourages investors to reduce their exposure, potentially contributing to increased selling pressure. 

If the immediate support provided by the 100-day EMA support at $43.94 crumbles, the Hyperliquid price could resume the downtrend, bringing the next support at $40.38, which was previously tested on August 22, within reach.