Hyperliquid's native token HYPE has emerged as a standout performer in a struggling cryptocurrency market, surging approximately 50% over two weeks to trade around $32. This rally defies the broader downturn that has seen Bitcoin (BTC) fall to a 14-month low near $69,000, Ethereum (ETH) struggle to hold $2,000, and assets like XRP and Solana (SOL) drop 27% in a week.
The token's strength is attributed to multiple positive ecosystem developments. A key catalyst was Ripple's announcement that its institutional prime brokerage platform, Ripple Prime, has enabled support for Hyperliquid. Furthermore, Grayscale expressed encouragement by the rise in perpetual futures trading for non-crypto assets on the Hyperliquid decentralized exchange.
On-chain metrics support the bullish narrative, with trading volume and open interest (OI) reaching new peaks even as the broader market tumbled. Open interest hit $1 billion, while 24-hour trading volume soared to $4.8 billion. Analysts also point to growing interest in HIP-3 activity.
From a technical perspective, HYPE shows a "higher-high structure and volatility expansion" on the 4-hour chart, suggesting buyers control momentum. The price expanded from a $20.50 base before consolidating near the 0.786 Fibonacci retracement level, a pause viewed as a sign of strength. Derivatives leverage is rebuilding slowly, indicating participation without excessive risk.
Analyst sentiment is largely optimistic. Crypto General expects volatility ahead with a potential explosion above $100 later this year. Analyst Zach highlighted the token's buyback mechanism, stating, "The more it takes over market share and volume, the bigger the buybacks are, which is one of the reasons it's so strong." Crypto Tony suggested HYPE could do "magical things when the market conditions are right." However, some caution remains, with analyst Greeny predicting a potential drop to $20 later in 2026 if bearish conditions persist.
