Hyperliquid (HYPE) rallies ~40% as whales accumulate; bullish crossover targets $51
Hyperliquid (HYPE) jumped roughly 40% in the past week, including a 21% 24‑hour rise to a 10‑week high near $38 (Feb 3). The latest reports show whale accumulation drove the rally: on‑chain data indicate wallets holding $1M–$5M of HYPE increased positions, while mid‑sized holders ($50k–$500k) also bought in. Momentum accelerated after HyperCore (the L1 behind Hyperliquid) signalled support for HIP 4 to expand into prediction markets, enabling fully collateralized outcome contracts. Network upgrades (HIP 3), rising trading volumes—especially in commodities products—and increased fee revenue have supported a buyback‑and‑burn mechanism that reportedly uses ~97% of net fees to reduce circulating supply. Technicals on the daily chart confirm bullish signals: a 20‑day SMA crossing above the 50‑day SMA, bullish MACD and Supertrend, and recent overbought readings that warrant caution. Analysts cited a near‑term resistance/target at the 78.6% Fibonacci retracement (~$51); a drop below the 23.6% retracement (~$29.6) would invalidate the bullish thesis. Traders should weigh strong social and on‑chain flows and supply compression against overbought conditions and wider market fragility. Disclosure: not investment advice.
Bullish
The combined reports point to a bullish outlook for HYPE. Primary drivers are on‑chain whale accumulation, buyback‑and‑burn supply reduction, rising trading volumes (notably in commodities products), and a confirmed bullish technical crossover (20‑day SMA over 50‑day SMA) with supportive MACD and Supertrend signals. These factors increase buying pressure and reduce circulating supply, supporting higher prices in the short to medium term. The expansion into prediction markets (HIP 4) and prior network upgrades (HIP 3) add fundamental upside if implemented, by broadening use cases and fee generation. However, risks remain: recent overbought readings and an elevated RSI increase the chance of a short‑term pullback, and broader crypto market weakness or a failure of Bitcoin to stabilize could halt momentum. Key levels to monitor: bullish target/resistance near $51 (78.6% Fib) and a bearish invalidation below ~$29.6 (23.6% Fib). Traders should consider position sizing, use stop‑losses, and watch on‑chain flows for continuation or distribution signals.