Key Insights
- HYPE price surged to its highest level since December last year.
- The token rose as the staking supply continued rising this week.
- Hyperliquid’s volume has continued rising amid the ongoing precious metal boom.
HYPE price token continued its strong bull run on Wednesday, reaching its highest level since December 4. Hyperliquid token jumped to a high of $34.53, up by 70% from its lowest level this year.
This article explores some of the top reasons why the token has surged and what to expect in the near term.
HYPE Price Jumped as Staking Jumped
HYPE price kept rising this week. Strong demand from stakers has fueled the move. Staking Rewards data shows the staking market cap jumped 36% to $15.16 billion.
The staking ratio climbed to 45.48%. These figures highlight strong growth in the staking sector. The staking ratio looks at the percentage of eligible tokens that are currently being staked.
A higher staking ratio is a bullish thing for a coin, as it means that investors have a long-term view for the token.
The figure will likely continue rising in the near term as more investors continue staking their tokens. For example, the net inflow rose by over $38 million on Wednesday, up from $10 million a day earlier.
One potential reason for the staking increase is the Hyperliquid Improvement Proposal 3, commonly known as the Builder-Deployed Perpetuals.
The proposal launched in October. It transformed the platform from a single perpetual contract listing.
Builders can now create their own perpetual markets. They can launch these markets on any assets. These builders must stake at least 500,000 HYPE tokens, currently worth over $17.2 million.
Hyperliquid is Benefiting From the Silver and Gold Prices Rally
Meanwhile, the HYPE token is benefiting from the ongoing precious metal boom that has pushed silver and gold prices much higher. Hyperliquid is one of the few decentralized perpetual platforms that make it easier for people to trade these assets.
Data shows that the futures open interest of silver has jumped to over $1 billion. That’s a sign of the rising demand among investors. This growth has pushed its volume much higher in the past few weeks.
DeFiLlama data shows that the volatility of perpetual futures on Hyperliquid rose to over $6.5 billion in the last 24 hours. It’s much higher than Lighter’s $3.9 billion and Aster’s $2.24 billion. It was also higher than other popular DEX networks like edgeX, Grvt, and Extended.
The data also shows that Hyperliquid has regained its top spot in perpetual futures in the past 30 days. It handled over $170 billion in volume, higher than Lighter’s $111 billion and Aster’s $127 billion.
The rising volume in Hyperliquid is important because it means that its network fees continue to rise. This leads to more buybacks and token burns.
Meanwhile, data compiled by CoinGlass shows that Hyperliquid’s future open interest and volume have jumped this week. This is a sign of the rising demand. HYPE’s volume rose to over $3.7 billion, the highest level since November 22nd.
Also, the futures open interest went parabolic and reached a high of $1.73 billion, the highest level since November.
HYPE Price Technical Analysis
The daily timeframe chart shows that the HYPE price rebound happened after it formed two major chart patterns. It formed a falling wedge pattern, which is made up of two descending and converging trendlines. This rebound happened after the two lines neared their confluence.
Hyperliquid token also formed a double-bottom pattern at $22.19 and a neckline at $29.35. A double-bottom is one of the most common bullish reversal signs in technical analysis.
The price has rebounded strongly. It moved above the neckline at $29.35. It also crossed the 50-day and 100-day EMAs. It remains above the Supertrend indicator, while the Relative Strength Index (RSI) has pointed upwards.
The price is likely to keep rising. Bulls are targeting the $50 resistance level. This level was the highest in October. It stands about 45% above the current price. Traders see strong momentum building toward that target.
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