The price of Hyperliquid is approaching a key resistance level and suggests a potential volatility drop to $35.
Conclusion
- HYPE is trading near $31 after falling 5.7% over the past 24 hours, but remains up 80% over the past year.
- Bollinger Bands are getting stronger, indicating a volatility squeeze that often precedes a major move.
- A rise above $34 could push the price towards $35, while a loss of $29 could expose the $26 support zone.
At press time, Hyperliquid (HYPE) was trading at $31.24, down 5.7% in the last 24 hours. Over the past week, it has moved from $26.22 to $33.33, up about 7%. However, the token has fallen by around 10% in a month.
Despite the recent decline, HYPE remains one of the better performing altcoins. Over the past year, the token has grown nearly 80% despite the challenges in the larger cryptocurrency market.
The resulting activity has cooled down a bit. CoinGlass data shows that trading volume fell 18% to about $1.25 billion, while open interest fell 7.5% to $1.21 billion, indicating that some traders closed their positions.
Basics of the HYPE sign
The price of HYPE is influenced by several structural factors. The core of the Hyperliquid ecosystem is the continuous trading of futures, and the Token Redemption Fund receives approximately 97% of the platform’s fees.
The increase in sales is directly related to the increase in repurchases. For example, when the average daily trading volume was 29 billion dollars, 5.82 million dollars were redeemed, which shows a direct relationship between trading demand and token support.
Market sentiment was also affected by the protocol update. Perpetual unlicensed markets were introduced by HIP-3, which totaled approximately $83 billion.
The aim of HIP-4’s offering is to launch a result trading product, combining prediction markets, options and binary style contracts. These additions can expand the functionality of the platform if more retail or institutional traders participate.
Technical analysis of hyperliquid price
HYPE appears to be entering a phase of compressed volatility. Bollinger Bands have tightened on the daily chart, which is often an indicator of a big move ahead.
The upper band, which has caused reversals in recent sessions, is tested by price.
The structure of the market has improved. HYPE has made a series of higher lows around $26 and $29 since late January, indicating that buyers are preemptively intervening on the downside. This outlook is also supported by momentum indicators.
There is more upside potential as the relative strength index is in the mid-50s and trending upward. Meanwhile, the average Bollinger band offers dynamic support around $29.
If HYPE rises above $33 to $34, a move to $35 could occur and extend to $38 if buying pressure increases. Deeper losses could retest the $26 base, and a rejection of resistance could push the token back to $29.
