Hyperliquid (HYPE) Rally: Expert Suggests Continued Growth, $35 Target Looms

Overview

Hyperliquid (HYPE) has distinguished itself as a resilient player in the cryptocurrency market, demonstrating significant growth while many other major tokens face challenges. Despite a general market downturn, HYPE has shown notable gains, prompting discussions around its future potential.

What Happened

Hyperliquid has recently emerged as one of the few large-cap cryptocurrencies that has maintained its strength across various time frames. This performance is particularly noteworthy given that Bitcoin, Ethereum, and most other major tokens are experiencing a market-wide pullback. HYPE has surged approximately 31% over the past week, reaching levels not seen in over a month. In the last 14 days alone, HYPE has increased by around 17%, while gains of 13% and 8% have been recorded over the 30-day and year-over-year periods, respectively.

The driving factors behind Hyperliquid’s upward trajectory include several fundamental and structural developments. The HIP-3 upgrade, which introduced permissionless perpetual contracts linked to real-world assets (RWAs) such as gold and silver, has been pivotal. Analysts have noted that trading in these products has expanded significantly, with silver-based perpetuals achieving daily volumes exceeding $1 billion on multiple occasions.

Additionally, there are indications of institutional accumulation, as decentralized autonomous traders have been increasing their exposure to Hyperliquid. Research firm Citrini has also provided positive commentary on the platform, further fueling market interest. Speculation surrounding a potential HYPE exchange-traded fund (ETF) has added to this momentum.

Technical Analysis

From a technical standpoint, HYPE is currently at a critical juncture. Analysts are observing significant resistance levels, with recent price movements described as impulsive and driven by confidence. A key level identified for HYPE is $30, which, if reclaimed decisively, could pave the way for further upward movement toward a major target near $35. This target aligns with the 0.618 Fibonacci retracement level.

Conversely, some analysts have adopted a more cautious stance, identifying support and resistance zones that could influence Hyperliquid’s trajectory. A crucial support region near $23.7 has been pinpointed, which will be instrumental in determining the sustainability of the cryptocurrency’s rally. Analysts have suggested that short-side setups should only be considered if bearish market structures appear at current levels or closer to the $38–$39 range.

Despite the overall bullish outlook, Hyperliquid has experienced some short-term volatility. Over the last 24 hours, HYPE has retraced approximately 10%, dropping to around $29. This dip has been characterized as a typical market reaction, particularly in light of recent developments affecting both gold and Bitcoin. Analysts believe that a recovery in these markets could provide additional upward momentum for Hyperliquid, potentially driving the token toward higher levels.

A second Hyperliquid airdrop is anticipated shortly, which analysts suggest may be strategically timed to support long-term growth in the ecosystem by distributing tokens while prices are still below peak levels.

From author

The current performance of Hyperliquid showcases the dynamics of the cryptocurrency market, particularly how certain tokens can thrive even amidst broader declines. The combination of innovative upgrades, strong trading volumes, and institutional interest presents a compelling case for HYPE’s potential trajectory.

Impact on the crypto market

• HYPE’s resilience may attract attention from investors seeking alternatives amidst a downturn in major cryptocurrencies.
• The introduction of RWAs could signal a broader trend towards integrating traditional assets into the crypto space.
• Institutional interest and trading activity in Hyperliquid may influence market sentiment and investment strategies.
• The anticipated HYPE airdrop could enhance user engagement and ecosystem growth.
• The technical levels and price actions of HYPE may set precedents for other cryptocurrencies navigating similar market conditions.