Hyperliquid (HYPE) surges 60%: Should you buy? Price analysis & DEX growth

Why Did HYPE Smash Through Resistance This Week?

The excitement surrounding Hyperliquid isn’t solely based on speculation. The main driver behind this surge lies in solid fundamental growth of the DEX. Indeed, the launch of silver and gold trading has boosted activity. The Open Interest (OI) and staking volume have experienced a sharp increase, signaling renewed interest from traders in the platform. More concretely, the price jumped from the $21.80 zone to reach $34.90 within just a few days.

This impulsive move caught many short sellers off guard. According to market data, this rally triggered over $20 million in liquidations on short positions, fueling a classic short squeeze. Additionally, reports indicate that a publicly traded institutional entity focused on digital asset reserves has added HYPE to its balance sheet, reinforcing buying pressure.

Currently, the token is trading in a zone between $32.00 and $33.50, marking a slight consolidation after the peak. The market is digesting this vertical rise, but volumes remain elevated, supported by record activity on commodity perpetual contracts (such as silver and gold) available on the DEX.

Technical Analysis: Key Levels to Watch

From a technical standpoint, HYPE’s market structure is clearly bullish, but signs of overheating are appearing in the short term.

Support and Resistance

• Immediate resistance: The $34.90 – $35.50 level acts as a short-term ceiling. This is the first HTF order block to break through. A daily close above this zone would open the path toward the psychological target of $47, the next order block.
• Critical support: In case of a retracement, the $30.60 zone (corresponding to key moving averages like the 100-day EMA) must absolutely hold to maintain the bullish momentum. Below that, a return toward $28 is conceivable.

Momentum Indicators

The RSI (Relative Strength Index) is flirting with the overbought zone (above 70), which suggests that a breather or sideways consolidation might be necessary before a new impulse. However, as long as the price maintains above $30, the underlying trend remains favorable for buyers.

Scenarios: Bull Run to $40 or Bull Trap?

The market stands at a crossroads. On-chain activity suggests that whales continue to lock their tokens through staking, reducing the circulating supply available for sale. This creates an environment conducive to upward movement, but volatility remains the watchword.

• Bullish Scenario: If HYPE manages to transform the $35 resistance into support, the next technical target sits at $47. A breakout of this level could trigger a new wave of FOMO (Fear Of Missing Out), attracting retail traders and propelling the price toward its previous all-time highs (ATH) around $59.
• Bearish Scenario: If rejection below $35 is confirmed and buying volume weakens, a correction toward the $30.60 support is likely. A loss of this level would invalidate the short-term bullish structure and could bring the token back to the accumulation zone of $22 – $25.

Is Now the Right Time to Enter Hyperliquid (HYPE)?

With a gain of over 46% over the last 7 days and notable outperformance compared to the rest of the crypto market, HYPE is attracting all eyes. The organic growth of the DEX, particularly through its new commodity perpetuals markets, offers solid fundamentals that go beyond mere speculation.

However, entering after a 60% vertical rise always carries risks. Prudent traders will wait for a confirmed retest of the $30 – $32 support or a clear breakout above $35 to position themselves.

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