Hyperliquid (HYPE) Rally: Experts Predict Continued Growth with a $35 Target in Sight

Hyperliquid (HYPE) is standing out as one of the few large-cap cryptocurrencies demonstrating strong performance across various time frames, even as the overall digital asset market faces challenges. While major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) are experiencing a market downturn, Hyperliquid has shown impressive gains, positioning itself uniquely in what many analysts believe is the initial phase of a bear market.

Key Takeaways

Hyperliquid (HYPE) has gained approximately 31% in the last week, reaching around $34.
The token has risen by 17% over 14 days, with gains of 13% over the past month and 8% year-over-year.
Key factors driving HYPE's growth include the HIP-3 upgrade and increased trading activity in products tied to real-world assets.
Analysts see critical resistance and support levels that could influence HYPE's future movements, with a potential target of $35.

Hyperliquid

Factors Behind Hyperliquid's Rise

According to data from CoinGecko, HYPE soared nearly 31% this past week, reaching about $34, which is its highest price in over a month. In the last 14 days, HYPE has increased by 17%, with a 30-day increase of 13% and 8% over the previous year. This is noteworthy compared to Bitcoin, which has dropped 12% in two weeks and about 21% year-over-year.

Analysts attribute HYPE's robust performance to fundamental and structural changes. Crypto expert Elite Crypto emphasized the significance of Hyperliquid’s HIP-3 upgrade, which has introduced permissionless perpetual contracts linked to real-world assets (RWAs) like gold and silver. This development has resulted in heightened trading volumes, with silver-based perpetuals reportedly surpassing $1 billion in daily volume on several occasions.

Additionally, Elite Crypto mentioned indications of institutional interest, suggesting that decentralized autonomous trading strategies operating on Hyperliquid have been increasing their investments. Positive commentary from research firm Citrini and speculation about a possible HYPE exchange-traded fund (ETF) have further fueled market enthusiasm.

HYPE's Critical Technical Analysis

On the technical front, analysts are identifying key levels to watch. DeFi Guru noted that HYPE is currently testing its main descending resistance, describing the recent price movements as bold and confidence-driven, indicating a shift in market momentum. The analyst pinpointed $30 as a vital level that needs to be reclaimed decisively. A breakout above this range could pave the way to the next significant target around $35, aligning with the 0.618 Fibonacci retracement level.

Another analyst, Efloud, took a more cautious stance, outlining potential support and resistance zones for Hyperliquid. He highlighted a crucial support area near $23.7, which will be significant for determining whether HYPE can sustain its rally. Efloud observed that the price has already hit an intermediate resistance level, suggesting that bearish setups would only be entertained if a negative market structure emerges on lower time frames, either at the current levels or approaching the $38–$39 range.

Although the overall sentiment is positive, Hyperliquid has not escaped short-term volatility, experiencing a pullback of roughly 10% in the past 24 hours, bringing HYPE down to about $29.

Hyperliquid The daily chart indicates marked volatility for HYPE over the last 24 hours. Source: HYPEUSDT on TradingView.com

Analyst Ox Kaize remarked that the recent dip is a typical market reaction, particularly given the influencing factors surrounding gold and Bitcoin. He believes that any recovery in these markets could lead to additional upward movement for Hyperliquid, potentially driving the token toward the $50 mark.

Looking ahead, there are more catalysts on the horizon, including a second Hyperliquid airdrop expected soon. Kaize speculates that this timing could be strategic, as distributing tokens while prices linger below peak values might support long-term growth in the ecosystem.

Featured image from OpenArt, chart from TradingView.com.