Key Insights:
- HYPE has rallied 19% in the past week, boosted by a Robinhood listing and major institutional purchases.
- Hyperliquid Strategies plans to use $1 billion in funds to acquire HYPE tokens, boosting long-term confidence.
- A breakout from the falling wedge pattern could push HYPE’s price to $61.5, marking a 54% potential upside.
HYPE price has shown a strong upward movement, rising by 19% in the past week, driven by significant developments that have rekindled investor interest. Notably, a listing on the popular U.S. trading platform Robinhood and plans by Hyperliquid Strategies Inc. to purchase more HYPE tokens have added fuel to the bullish momentum. These catalysts have positioned HYPE close to a potential breakout from a falling wedge pattern on the 4-hour chart, suggesting further upside in the near term.
The recent spike in HYPE’s value is largely attributed to two major events. Robinhood, one of the most recognized trading platforms in the U.S., listed HYPE, opening up the token to a broader retail audience. This move has significantly boosted the asset’s visibility and created a foundation for long-term demand.
Moreover, Hyperliquid Strategies Inc. made waves by filing an S-1 registration with the U.S. Securities and Exchange Commission, aiming to raise up to $1 billion through a stock offering. The company disclosed that a portion of the funds would be used to acquire and stake HYPE tokens, further strengthening confidence in the token’s future.
Institutional Support and Technical Analysis
Another factor contributing to the rally is the backing from institutional investors. Medical technology firm ENDRA Life Sciences revealed it had purchased $3 million worth of HYPE tokens as part of its new digital asset treasury strategy. This purchase signals growing institutional confidence in the Hyperliquid ecosystem, potentially paving the way for more institutional involvement.
On the technical side, HYPE is nearing a critical point. It has been forming a falling wedge pattern since early September, characterized by lower highs and lower lows. Breakouts from such patterns typically signal a bullish reversal. Currently, the price hovers near the $41 to $42 zone, close to the upper boundary of this pattern. A decisive move above this range, particularly with strong trading volume, could push the price to the $61.5 level, marking a 54% increase from current levels.
Liquidation Heatmap and Support Zones
The market’s liquidations also support the bullish narrative. Data from CoinGlass reveals a notable cluster of short liquidations between $41 and $42, coinciding with the falling wedge’s upper boundary. A breakout above this zone could trigger a cascade of liquidations, adding fuel to the bullish momentum.
On the downside, a cluster of liquidation activity is visible between $38 and $36, which could provide short-term support. However, if the price drops below $36, the absence of significant support below could lead to more price volatility and a faster decline.
With strong institutional backing, technical indicators favoring a breakout, and a series of positive developments, HYPE is poised for further growth. The price action suggests that a breakout could lead to substantial upside in the near term, making HYPE a token to watch in the coming days.
