Hyperliquid Price Shows Recovery Pattern Following 4% Surge

Amid the bullish sentiment in the overall crypto market, the Hyperliquid (HYPE) token has also gained an upward momentum with a 4.5% surge on a daily chart.

However, despite today’s surge, Hyperliquid is still down by around 7.8% on a weekly chart after facing liquidation in the last week following the Kelp DAO hack that shook the entire DeFi sector. 

At present, the HYPE token is trading at around $41.23 with a market capitalization of $10.52 billion, according to CoinMarketCap. The daily trading volume revolves around $350.48 million. 

Hyperliquid Price Forms Bullish Recovery Pattern As Bitcoin Soars Above $79,000

Before the massive crash, Hyperliquid’s price was trading at above $45. The intense selling pressure has dropped its price to the $40.50 zone. At the moment, buyers are expected to take place at dollar cost average zones between $41 and $40.70, then $40.50 to $40.20, and finally $40.00 to $39.70. 

According to the previous price, there are major upside targets around $41.80, $42.50, and finally $43.50. 

The surge in HYPE HYPE3.58% comes after Bitcoin (BTC) broke above $79,000 following United States President Donald Trump’s announcement to approve the extension of a ceasefire with Iran. This surge in Bitcoin has triggered a correlation in altcoins. 

According to the TradingView price chart, Hyperliquid is following a recovery pattern after testing support levels around $39. The relative strength index is standing at approximately 61 on the 14-period timeframe. This shows that the cryptocurrency is in neutral momentum without entering overbought territory. 

Moving averages are giving mixed signals, with the 20-period exponential moving average around $40.90 acting as a short-term buy level while the 10-period simple average sits higher around $42.70. After this, the cryptocurrency might face some resistance levels. 

The price chart is suggesting that a clear price above $42 could spark a breakout in Hyperliquid. If the cryptocurrency falls below $40, it might test a support level at around $39. On-chain data

According to DeFiLIama, the total value locked on the Hyperliquid is around $1.46 billion. Protocol revenue from trading fees supports ongoing token buybacks that remove supply from circulation and create deflationary pressure. 

For example, the assistance fund recently acquired thousands of HYPE tokens at an average price of around $40 as part of its strategy. These mechanisms are linked to token value directly to platform usage and encourage long-term holding among participants. 

Hyperliquid Ecosystem Sees Major Developments

There are many major developments taking place on Hyperliquid. The HIP-3 proposal has enabled permissionless deployment of perpetual markets, and this feature has sparked explosive growth in real-world asset trading, including commodities like oil and gold. 

Open interest in these non-crypto pairs is now contributing a meaningful share of total volume and brings traditional finance participants onto the chain. 

The upcoming HIP-4 upgrade, currently on testnet, will introduce outcome contracts for prediction markets and full collateralized event-based trading that carries on liquidation risk. These contracts settle at fixed expiry dates and expand the platform into areas once dominated by centralized venues. 

Apart from this, Grayscale amended its HYPE exchange-traded fund filing and named a new custodian. This increases its chances of approval. 

Also, the Hyperliquid policy center is actively developing frameworks for open blockchain perpetual contracts in the United States, making it a perfect fit amid the major developments in the digital asset regulatory framework.

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