HYPE Price Eyes $90 After Hyperliquid Activates AQAv2 Buybacks

Key Insights:

• Hyperliquid reportedly plans to buy back and possibly burn more HYPE price after activating AQAv2.
• The move may boost HYPE crypto confidence, possibly propelling it higher.
• Wintermute draws down its HYPE short exposure.

HYPE price just pulled off a new historic top in the last 24 hours and could be poised for more price discovery. This is despite being oversold, and this could be due to the possibility of declining supply and buyback-driven demand.

HYPE price pulled off an impressive 43% rally last week. However, its momentum has notably cooled this week, as evidenced by its consolidation near its recent high over the last 4 days.

Despite this, the HYPE price still favored the bulls. It managed to push higher, securing a new ATH at $83.73.

HYPE price was already high in overbought territory at press time. Despite this, recent developments reveal why it may overcome incoming profit-taking and possibly push towards $90 and above.

Hyperliquid Opens the Door for Buybacks, Which Could Sustain HYPE Price Bulls

The fact that HYPE price was deeply overbought has investors wondering whether a retracement could be on the cards.  However, while the buying momentum appeared to be cooling, sell pressure remained limited.

Moreover, Hyperliquid itself may be about to contribute to demand, according to one of its latest announcements. Hyperliquid reportedly plans to launch a HYPE buyback and burn program through the AQ1v2 activation.

The program will reportedly use yield earned through the USDC stablecoin. This means that the program will not only contribute to demand for the HYPE crypto but also actively engage in lowering its supply through burning.

The buyback and burn program alone may not generate enough demand or affect supply enough to trigger a major impact on demand. However, it could influence investor sentiment enough to avoid sell pressure or even fuel further upside demand.

Bulls may also be holding on to their prospects because of recent statements by Terry Duffy, the CME Group CEO. He recently stated that it could play a major role in the U.S push towards 24/7 market operations.

Duffy’s statement also aligned with earlier optimism sparked by President Trump’s remarks about Hyperliquid’s entry into the US. These developments have heavily influenced current sentiments around HYPE price.

Wintermute Scales Back on Its HYPE Short Positions

The shift in sentiment was clearly evident in the market, and perhaps the biggest example of that came courtesy of Wintermute. The algorithmic trading firm has reportedly slashed downside exposure to HYPE from $211.5 million to $80.4 million.

Wintermute’s decision to lower its HYPE short positions aligns with the rising probability of more upside. After all, HYPE price was still heavily discounted (roughly 49% at press time) from its historic top achieved 12 months ago.

Institutional inflows also contributed to the bullish optimism. HYPE ETFs saw $13.2 million in inflows on Monday and Tuesday. This was notably higher than the institutional activity observed during its aggressive rally last week.

The fact that HYPE ETF inflows have increased near the recent local top signals bullish confidence. Institutions are less likely to buy unless they remain convinced that HYPE crypto can push higher from its current price level.

Despite these observations, whale order flows indicated that the market was preparing for a pullback, although in limited amounts. Some whales were already locking in short-term profits as uncertainty elevated in overbought territory.

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