Hyperliquid Price Prediction: HYPE Eyes $100 as Risks Rise

Hyperliquid (HYPE) has jumped by 4% in the past 24 hours, following the listing of a popular memecoin called USELESS, whose trading volumes has exploded recently.

This Solana-based memecoin has jumped by 15% following its Hyperliquid listing, while volumes have increased by 30% to $173 million.

Such levels account for 56% of the asset’s circulating market cap, reflecting the strength of the buying pressure.

USELESS has seen its price explode by 683% as the token went viral on social media and started to gain traction among retail investors quickly.

Hyperliquid’s listing looks like a strategic move to capitalize on its rising popularity and significant volumes.

This is consistent with the practices of top centralized exchanges that tend to bypass their listing criteria whenever a new cryptocurrency attracts enough attention.

On-Chain Metrics Show a Big Decline in Transaction Volumes After August’s Spike

According to on-chain data from ASXN, open interest on Hyperliquid has kept rising in the past week, moving from $7.9 billion to $8.1 billion. Consistent with the view that we are entering a bull market, this indicates that traders continue to position to capitalize on the continuation of the current rally.

However, it is clear that the price action has entered a consolidation phase, as the initial FOMO has faded a bit ahead of this month’s interest rate decision by the Federal Reserve.

Open Interest have been steadily declining since their massive spike in mid-August, dropping from $27 billion worth of BTC negotiated back then to $17.6 billion as of last week. Bitcoin is the most traded token within Hyperliquid.

Similarly, the number of BTC trades processed by this layer-one blockchain dropped from 3.08 million during the week ended on August 16 to 656,000 as of last week, resulting in a 79% decline in just 7 days.

This is consistent with what we are seeing in the charts. Meanwhile, Hyperliquid has experienced a massive rally this year and has jumped to the 9th place among the most valuable tokens in the crypto space with a 249% year-to-date (YTD) gain.

HYPE Should Still Rise to $100, But Odds of a Pullback Right Now are Quite High

We have been repeatedly supporting a target of $100 for this token in the near term, as industry-specific tailwinds like the approval of the Clarity Act in the United States and ongoing talks with the U.S. Commodity Futures Trading Commission (CFTC) could accelerate the platform’s adoption in this massive market.

The daily chart shows that a bull flag pattern has emerged following the token’s strong jump above the $75 resistance.

The upward inclination slope of the flag indicates that demand from late buyers is exceeding the supply coming from early traders who have probably been taking profits off the table after such a strong price uptick.

However, even though the price of HYPE has been increasing, a bearish divergence has emerged in this time frame, indicating that positive momentum is weakening.

This increases the risk of a pullback to $75, meaning a downside risk of 13% for the token. Although we maintain our bullish target of $100 for HYPE, late buyers may prefer to wait for the token to retreat to $80 or lower to get in instead of buying near its all-time high.