Hyperliquid's native token HYPE has experienced a significant price recovery, trading above the $40 mark with recent gains of 7% in 24 hours and 15% over the past week. This rally follows a bounce from the monthly low of $32.62 and places the current price just 11% below its all-time high of $45.57 set in mid-June.
The upward momentum is supported by a surge in decentralized exchange (DEX) activity, with Hyperliquid's monthly trading volume hitting $11.44 billion in June—the highest since December 2024. This figure represents a strong increase compared to $4.86 billion in April and $9.66 billion in May, signaling growing user adoption and trader confidence. Additionally, the total value locked (TVL) in the platform has impressively grown from approximately $330 million in April to $1.8 billion recently, a more than five-fold increase.
Technical indicators present a largely bullish scenario. The Relative Strength Index (RSI) is currently around 60, trending upwards, indicating strengthening momentum without being overbought. Various moving averages across short and long timeframes support the ongoing uptrend, complemented by a Moving Average Convergence Divergence (MACD) indicator approaching a bullish crossover. However, some oscillators, such as the Average Directional Index and Awesome Oscillator, remain neutral, and tight Bollinger Bands suggest the potential for increased volatility.
Key resistance levels to watch include $39.9 and $42.2. Surpassing these would open the path toward the previous all-time high near $45.8, offering approximately 16.8% upside from current prices. Conversely, failure to maintain support above $38-$39 could lead to profit-taking and a decline toward $35 if overall market sentiment weakens.
While trading volumes have been steady and the number of new users on the DEX has risen in recent months, recent price rallies faced resistance at the $39 level, indicating some hesitation among bulls. The token’s trading volume during its recent recovery was relatively low, pointing to weak bullish demand, raising caution about sustained upward movement without increased buying pressure. Funding rates and open interest data reflect short-term bullish expectations, but stronger volume will be essential to drive a successful breakout.
Market sentiment for HYPE may also be influenced by movements in the broader crypto market, including Bitcoin (BTC), which can impact trader confidence and demand.