Hyperliquid’s HYPE Token Eyes $35 Breakout Amid Surging Volume
- HYPE surges 15.7% in 24 hours, and tests a critical resistance level at $30.
- Whale traders open $1B BTC long, influencing broader market momentum.
Hyperliquid’s native token, HYPE, is making waves as it nears a key resistance level around $30. Over the past month, it has surged more than 76%, with a substantial 15.21% gain in the last 24 hours. This rally is backed by significant upgrades in staking incentives, record-breaking open interest, and general activities in the DeFi space, all combining to thrust HYPE into the spotlight.
After retesting the $26 to $28 range, HYPE is inching closer to its all-time high of $35. But technical charts suggest traders should tread carefully as momentum looks stretched, signaling that a breakout or a pullback could be just around the corner.
Technical Indicators Flash Warning as Bulls Approach Resistance
While the overall trend remains bullish, some warning signs have appeared. The token has suppased all its 10-day, 30-day, and 60-day MA at $26.88, $22.83, and $18.67 respectively which confirmed potential strong upward momentum. Yet, the current price action hints at possible exhaustion.
The Relative Strength Index (RSI) at 78 and other momentum tools show overbought conditions on the daily chart. Should HYPE push above $30, it might trigger a short-term liquidity grab, where momentum traders rush in to take profits or chase the breakout.
Intraday action confirms this pattern. HYPE briefly broke through intraday resistance during U.S. trading, hinting at a classic liquidity sweep. If the move doesn’t hold, we could see a swift correction, with essential support levels near the 50- and 200-period moving averages.
Staking Incentives and Whale Activity Fuel Supply Squeeze
A major driver behind HYPE’s surge is the launch of stHYPE, a staking mechanism that offers traders up to 40% off trading fees. This reward has encouraged users to lock up more than 11 million HYPE tokens, tightening the circulating supply and increasing prices.
On-chain analytics firm Lookonchain sums it up nicely:
“When tokens get staked and taken out of circulation, it raises the bar for new buyers — creating a bullish squeeze as liquidity tightens.”
Meanwhile, Hyperliquid recently began supporting USDT deposits, which allows opportunities for traders that adopt USDT(Tether) instead of USDC.
It’s noteworthy to mention how whale activity is drawing attention. A wallet linked to high-risk trader James Wynn, known as “0x507,” has opened an unprecedented $1 billion BTC long position on-chain, using 40x leverage. Wynn started within an $830 million position, adjusting it multiple times, with an entry price near $108,000 and a liquidation threshold below $104,000. As Bitcoin surged past $110,000, Wynn saw a paper profit of $17 million before the position pulled back slightly.
What’s Next for HYPE?
After peaking near $36.20, HYPE has cooled off a bit. It is currently trading around $31 but maintaining a solid upward trend. The chart shows a strong support base between $27.50 and $28.40.
If whales activities break through resistance zone between $35.80 and $38.50, Hype might revisit its recent ATH in December 2024 and could aim higher to $45 to $50 psychological level.
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Hyperliquid’s HYPE Token Eyes $35 Breakout Amid Surging Volume
- HYPE surges 15.7% in 24 hours, and tests a critical resistance level at $30.
- Whale traders open $1B BTC long, influencing broader market momentum.
Hyperliquid’s native token, HYPE, is making waves as it nears a key resistance level around $30. Over the past month, it has surged more than 76%, with a substantial 15.21% gain in the last 24 hours. This rally is backed by significant upgrades in staking incentives, record-breaking open interest, and general activities in the DeFi space, all combining to thrust HYPE into the spotlight.
After retesting the $26 to $28 range, HYPE is inching closer to its all-time high of $35. But technical charts suggest traders should tread carefully as momentum looks stretched, signaling that a breakout or a pullback could be just around the corner.
Technical Indicators Flash Warning as Bulls Approach Resistance
While the overall trend remains bullish, some warning signs have appeared. The token has suppased all its 10-day, 30-day, and 60-day MA at $26.88, $22.83, and $18.67 respectively which confirmed potential strong upward momentum. Yet, the current price action hints at possible exhaustion.
The Relative Strength Index (RSI) at 78 and other momentum tools show overbought conditions on the daily chart. Should HYPE push above $30, it might trigger a short-term liquidity grab, where momentum traders rush in to take profits or chase the breakout.
Intraday action confirms this pattern. HYPE briefly broke through intraday resistance during U.S. trading, hinting at a classic liquidity sweep. If the move doesn’t hold, we could see a swift correction, with essential support levels near the 50- and 200-period moving averages.
Staking Incentives and Whale Activity Fuel Supply Squeeze
A major driver behind HYPE’s surge is the launch of stHYPE, a staking mechanism that offers traders up to 40% off trading fees. This reward has encouraged users to lock up more than 11 million HYPE tokens, tightening the circulating supply and increasing prices.
On-chain analytics firm Lookonchain sums it up nicely:
“When tokens get staked and taken out of circulation, it raises the bar for new buyers — creating a bullish squeeze as liquidity tightens.”
Meanwhile, Hyperliquid recently began supporting USDT deposits, which allows opportunities for traders that adopt USDT(Tether) instead of USDC.
It’s noteworthy to mention how whale activity is drawing attention. A wallet linked to high-risk trader James Wynn, known as “0x507,” has opened an unprecedented $1 billion BTC long position on-chain, using 40x leverage. Wynn started within an $830 million position, adjusting it multiple times, with an entry price near $108,000 and a liquidation threshold below $104,000. As Bitcoin surged past $110,000, Wynn saw a paper profit of $17 million before the position pulled back slightly.
What’s Next for HYPE?
After peaking near $36.20, HYPE has cooled off a bit. It is currently trading around $31 but maintaining a solid upward trend. The chart shows a strong support base between $27.50 and $28.40.
If whales activities break through resistance zone between $35.80 and $38.50, Hype might revisit its recent ATH in December 2024 and could aim higher to $45 to $50 psychological level.
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