FUNDAMENTAL OVERVIEW
Hyperliquid’s recent
strength has been driven by a combination of strong protocol activity and
favorable tokenomics. Trading volumes and open interest have continued to grow,
while a large share of fees from its core perpetuals business is used to buy back
HYPE through the Assistance Fund.
Recent buybacks,
including roughly $10 million of HYPE purchased and burned on October 5, have
reinforced the supply-reduction narrative. The expansion of HIP-3, which allows
third parties to create perpetual markets for assets such as stocks and commodities,
is also broadening Hyperliquid’s market beyond crypto.
Institutional adoption
has provided another important catalyst. HYPE-related ETFs have attracted
significant inflows, while institutional investors and treasury vehicles have
accumulated the token. Coinbase and Kraken are also expanding access to
Hyperliquid’s infrastructure, including plans for regulated US perpetual
futures.
Together, these
developments have created a strong idiosyncratic narrative around HYPE,
allowing it to outperform the broader crypto market despite the current macro
and geopolitical headwinds.
Nevertheless, the broader crypto market is coming under renewed pressure as
Treasury
yields and the US dollar eye new highs after a jump in oil prices following renewed
Houthi attacks on Saudi Arabia and a storm in the US Gulf threatening
production and refining infrastructure.
US-Iran negotiations and interest rate expectations will remain the
major drivers. A breakthrough would be positive for HYPE on easing inflation and
rate hike concerns, while a renewed escalation in tensions could lead to a
bigger selloff.
HYPE TECHNICAL ANALYSIS –
DAILY TIMEFRAME
On the daily chart, we
can see that HYPE is
testing a major trendline. We can expect the buyers to lean on the trendline,
with a defined risk below it, to position for rally into the 105.00 level. The
sellers, on the other hand, will want to see the price breaking lower to pile
in for a drop into the 75.00 handle, with the 85.00 level as the first target.
HYPE TECHNICAL ANALYSIS – 4
HOUR TIMEFRAME
On the 4 hour chart, there’s
not much we can add as the buyers will have a better risk to reward setup
around the trendline to keep targeting new highs, while the sellers will look
for a break to extend the drop into new lows.
HYPE TECHNICAL ANALYSIS – 1
HOUR TIMEFRAME
On the 1 hour chart, we
have a minor downward trendline defining the bearish momentum. If the price
pulls back into the trendline, we can expect the sellers to lean on it, with a
defined risk above it, to keep pushing into new lows. The buyers, on the other
hand, will look for a break higher to increase the bullish bets into the 105.00
level next.
UPCOMING CATALYSTS
Todaywe have the FOMC meeting minutes. Tomorrow,
we get the latest US Jobless Claims figures. On Friday, we conclude the week
with the University of Michigan Consumer Sentiment survey.
This article was written by Giuseppe Dellamotta at investinglive.com.