Hyperliquid (HYPE) Surges 11% as $583M Treasury Formation and Whale Activity Signal Uptrend
Hyperliquid (HYPE) has shown great strength in today's trading session, rising 11% to stay far above the $46 level. This is because
Quick overview
- Hyperliquid (HYPE) has surged 11% today, driven by institutional support and whale activity, positioning it above the $46 level.
- A significant partnership with Sonnet BioTherapeutics is set to establish a $583 million treasury for HYPE, enhancing its demand and institutional acceptance.
- Technical analysis indicates HYPE is poised for a breakout attempt at the $50 resistance level, with strong support at $45.80.
- Recent whale activity suggests increased market confidence, with a notable player shifting to a long position, reinforcing a bullish outlook for HYPE.
Hyperliquid (HYPE) has shown great strength in today’s trading session, rising 11% to stay far above the $46 level. This is because institutional support and whale activity have come together to produce a perfect storm of positive emotion. In the crowded DeFi space, the Layer-1 decentralized perpetual futures platform stands out even more. Several factors are currently coming together that could push the token into the psychologically important $50 resistance level.
Nasdaq-Listed Sonnet BioTherapeutics Anchors $583M HYPE Treasury Initiative
The most important news that is affecting prices today is that Nasdaq-listed biotech company Sonnet BioTherapeutics has teamed up with a new company called Rorschach to start a large Hyperliquid digital asset treasury. When the deal is done, Hyperliquid Strategies Inc. will own an amazing 12.6 million HYPE tokens and have $305 million in cash set up for future token purchases.
This corporate treasury formation is a turning point for institutional acceptance of HYPE. It gives the token a lot of demand and shows that the project can last for a long time. The structure is similar to successful corporate Bitcoin treasury methods, which means that there will be continued buying pressure as the $305 million cash component is used to buy more HYPE over time.
HYPE/USD Technical Analysis Points to Imminent $50 Breakout Attempt
HYPE’s chart structure shows strong signs that the price will keep going up from a technical point of view. The token just tested the psychological $50 resistance level on Monday before falling back. However, bulls have kept control over the $45.80 support zone, which is quite important. This price movement makes it look like the prior resistance level might be turning into support, which is a good sign that a big breakout is coming.
There are a number of good technical signs on the daily chart. The upsloping moving averages show that people are still interested in buying, and the Relative Strength Index (RSI) is getting close to the overbought level at 70, which means that the momentum is still strong but not quite at its peak. Most importantly, a well-defined trend line support has emerged since the rally on July 8. The recent price action represents the third successful contact of this ascending support line.
HYPE Whale Activity Reinforces Bullish Outlook
There has been a lot of whale activity on the Hyperliquid platform, which has gotten the market’s attention. Recently, the well-known whale “AguilaTrades” made a huge $475 million position flip. They closed a 20x Bitcoin short position and then opened a 20x Bitcoin long position with 4,000 BTC. This huge change in sentiment from a savvy market player signals that more people believe the broader cryptocurrency market will go higher, and HYPE is in a good position to take advantage of the resulting risk-on atmosphere.
The whale’s strategic repositioning, which is now displaying a floating profit of $2.85 million, shows the kind of institutional-level conviction that often comes before big market moves. To be able to take on such high levels of risk, you need to have a deep understanding of the market and be able to manage risk well. This is why the bullish flip is so important for market mood.
Hyperliquid Platform Fundamentals Support Valuation Expansion
Hyperliquid’s operational metrics continue to support high valuations, even when technical aspects are not taken into account. The platform’s perpetual futures contracts just hit a record $11.3 billion in open interest, showing that more and more people are using its decentralized trading infrastructure. Even though Hyperliquid only handles about one-seventh of Binance’s daily perpetual volumes, this milestone makes it the clear leader in the decentralized perpetual futures market.
HYPE is in a good position to see a lot of transaction volume growth because it just teamed up with Phantom wallet, which has more than 11 million users and handles $20 billion in swaps every year. Hyperliquid gets access to a huge number of users as the backend for Phantom’s new perpetual trading module. This is because Phantom already has a good reputation in the Solana ecosystem.
Hyperliquid (HYPE) Price Prediction and Outlook
Based on current technical patterns and fundamental factors, HYPE is ready to test the $55-$57 resistance zone, which is the upper trend line resistance on the daily chart. This means that there is about a 20% chance of the price going up from where it is now, with the $50 psychological level as a temporary target.
Traders should, however, keep a close eye on important support levels. If the price falls below the 20-day exponential moving average at $42.93, it would mean that bullish momentum is slowing down. If it falls below the 50-day simple moving average at $38.86, it might mean that the price is going to correct more strongly toward the $41 support zone.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save