Hyperliquid Price News: HYPE Jumps 42%, Momentum Builds Towards $50

Hyperliquid (HYPE) is a rare gem these days in the crypto market as the native asset of this decentralized exchange has delivered a 42% gain in the past 30 days while the rest of the market has tanked.

Only Canton (CC) has been able to achieve a similar feat within the list of top 20 tokens, with a 26% monthly gain.

Trading volumes for HYPE rose to $1 billion in the past 24 hours, currently accounting for 10% of the asset’s circulating market cap.

After a few months of fighting for the leading spot in the derivatives market, Hyperliquid seems to have solidified its stance at the top of the ranks with a market share of 26% with 24-hour volumes of $8.2 billion.

In contrast, Aster has experienced a big drop in activity, as its 24H volumes have declined to $3.6 billion according to the latest data from CoinMarketCap.

HYPE Volumes Explode Alongside On-Chain Transactions

The launch of HIP-3 was a relevant milestone for Hyperliquid, as this separate platform has allowed protocols like Trade.xyz to launch perpetual futures for multiple instruments, including commodities like gold and silver and equities like Tesla (TSLA) and Apple (AAPL).

Hyperliquid Transactions and HYPE’s Volumes – Source: Artemis

Data from Artemis also shows that transaction volumes within the Hyperliquid layer-one chain have jumped from 1.1 billion during the week ended on January 18 to 3.7 billion as of last week.

Although weekly transactions still stand way below their 12-month peak of 7.9 billion, this is a positive sign that trading activity could be picking up as the price of top cryptos like Bitcoin (BTC) and Ethereum (ETH) have hit multi-year support levels.

We also saw a spike in trading volumes last week as the market tanked. A total of $4.9 billion worth of HYPE exchanged hands during this period, making it the third busiest week of the past 12 months for the token.

HYPE’s Previous Prediction Yielded 35% – What’s Next?

In our previous HYPE price prediction, we identified a buy signal in the daily chart as the token broke out of its descending price channel.

HYPE/USD Daily Chart (Bitget) – Source: TradingView

Back then, we set forth a near-term target of $31 that HYPE easily reached, but also shared a mid-term target of $50 if bullish momentum picked up steam.

Who would have thought that these targets would stick despite the cascade liquidations we saw in the past few days?

At today’s session high of $38, this signal yielded a 35% gain in just 7 days.

The Relative Strength Index (RSI) is about to hit overbought again if the price keeps climbing, raising the odds of a pullback. We may expect a drop to $31 that would open up the door for late buyers to enter a long position.

The price may go as low as $28 to retest the previous high before hiking back to $40. That’s the baseline scenario for the time being.

However, market conditions are still a bit tough. Although HYPE has managed to stay afloat and defy the turmoil, it can be swept into the whirlwind at any given point if another wave of strong selling hits.