Hyperliquid's native token HYPE has gained 21% this week and 12% in the past day, pushing through the critical $50 resistance level that previously stalled rallies. Trading volume exceeded $522 million as the token reached levels not seen since earlier this year, with analysts eyeing potential moves toward $55.
What to Know:
- Two large investors purchased 358,279 HYPE tokens worth $18 million, signaling institutional interest in the cryptocurrency
- Hyperliquid's total value locked reached $721 million in August, the highest level recorded this year
- The token broke through $50 resistance after rebounding from an accumulation zone between $43-$45
Technical Breakout Signals Potential Rally
The $50 price level represents a significant technical barrier for HYPE. Previous attempts to breach this resistance in August resulted in quick reversals and pullbacks to lower levels.
Current momentum appears stronger than earlier efforts.
Analyst Ali Martinez stated, "a breakout here could catapult Hyperliquid $HYPE to $55." The assessment suggests price targets between $52 and $56 become viable if the token maintains levels above $50.
Should the breakout fail, support exists near $46 where buyers previously stepped in. The recent move follows a rebound from what traders identified as an accumulation zone between $43 and $45.
Alpha Crypto Signal characterized the setup as "textbook" after HYPE touched the lower boundary and recovered. At current levels near $50, increased trading volume supports the upward movement.
Moving Averages Turn Positive
Short-term technical indicators have shifted in favor of buyers. The 9-day exponential moving average sits at $46, while the 50-day simple moving average rests at $44.
Both averages now trade below the current price, a configuration that typically supports continued upward momentum. HYPE has also re-entered its established upward channel, suggesting buyers may be positioning for another attempt at $55 or higher levels.
The technical picture represents a marked improvement from recent weeks when the token struggled to maintain gains above key resistance areas.
Large Holders Signal Confidence
Institutional activity has increased alongside the price movement. Analyst RayRay reported that two wallets acquired 358,279 HYPE tokens valued at more than $18 million.
"Big players don't move size like this without any conviction," RayRay noted. He added that sophisticated investors often "position early before the crowd catches on."
Whale movements carry particular significance in cryptocurrency markets due to their potential to influence price direction. When combined with technical strength, such positioning often precedes sustained rallies.
The timing of these large purchases coincides with HYPE's technical breakout attempt, suggesting coordinated accumulation by informed investors.
Platform Growth Reaches New Heights
Hyperliquid's underlying metrics support the token's recent performance. Data from DeFiLlama shows the protocol's total value locked reached $721 million as of August 27, marking the highest level recorded this year.
The TVL figure represents funds deposited in Hyperliquid's decentralized exchange and other protocol features. Higher TVL generally indicates increased user adoption and confidence in the platform.
Hyperliquid began the year with TVL under $200 million. The metric peaked above $600 million in February before declining to near $300 million during the spring market downturn. Since May, capital inflows have returned steadily. August's surge pushed the protocol to new highs, with TVL growing alongside token price appreciation.
Total Value Locked measures the dollar amount of assets deposited in a decentralized finance protocol. Higher TVL indicates greater user participation and platform adoption. Resistance levels represent price points where selling pressure historically emerges, preventing further upward movement. Breakouts above resistance often signal the start of new uptrends.
Accumulation zones are price ranges where large investors typically build positions, expecting future price appreciation. These areas often provide support during market declines.
Market Outlook Remains Positive
Rising TVL combined with increased whale activity suggests renewed participation in the Hyperliquid ecosystem. The convergence of technical breakout signals and fundamental growth metrics creates a supportive environment for continued price appreciation.
HYPE's ability to hold above $50 will likely determine whether targets near $55 become achievable in the near term.