HYPE holds $40 as rising wedge forms, eyes $50
Hyperliquid (HYPE) is bouncing after reclaiming the $40 support level, with price moving from roughly $39 to an intraday high near $43 before stabilising around $42. The latest update ties the surge to higher derivatives activity linked to the HIP-3 framework and commodities trading. Whale accumulation reportedly neared $200M over 30 days, while Bitwise ETF developments and Grayscale’s updated HYPE ETF filing add to the institutional narrative.
From a trading-flow perspective, HYPE’s fee-and-buyback model is highlighted: the platform is said to generate about $1.7M per day, with up to 97% of fees used for open-market buybacks of HYPE—potentially supporting demand during consolidation.
Technically, HYPE is forming a rising wedge on the daily chart. Bulls remain constructive while price stays within the pattern, supported by a green Supertrend and RSI rebounding above neutral. The bullish target discussed is a push toward $50. Bear case: a break below $40 could invalidate the pattern and trigger a deeper pullback toward $35.
Traders should focus on whether HYPE can defend $40 and continue the wedge breakout attempt, or whether the wedge resolves lower and pressures near-term support.
Bullish
The news flow is net bullish for HYPE. The latest derivatives-driven rally and sustained institutional narrative (Bitwise and Grayscale ETF updates) support demand, while the platform’s buyback-heavy fee model can create persistent bid pressure. Technically, the rising wedge is framed as constructive while HYPE holds $40 and indicators remain supportive (green Supertrend, RSI recovery).
In the short term, traders likely key off a defence of $40 and the attempt to break higher toward the $50 area. In the medium term, if ETF-related attention and whale accumulation persist alongside buybacks, the bid can keep absorbing dips. The main risk is a clear invalidation: losing $40 may cause the wedge to resolve lower and accelerate selling toward the $35 level.