Whales and Rising TVL: The Explosive Cocktail for Hyperliquid
The HYPE token is currently trading at $56.66, posting an impressive surge of around 18.7% over the last 24 hours. This momentum is largely supported by a soaring TVL, proving the growing attractiveness of the Hyperliquid ecosystem for institutional investors and derivatives traders. Indeed, the TVL has reached its highest level since October 11 , after taking a hit following the October 10 crash. Furthermore, Circle is using 90% of its yields to buy back HYPE tokens, which also contributes to upward pressure.
Meanwhile, on chain data reveals massive whale activity. Wallets linked to large funds have accumulated millions of tokens, reinforcing buying pressure. However, a mysterious splitting of certain wallets (whale split) raises questions. Is this a discreet distribution before a retracement or a long term security strategy?
Moreover, a wave of unstaking has hit HYPE. In total, nearly $180 million worth of HYPE tokens are waiting to be unstaked. This could be seen as an imminent sell signal.
On the flip side, Alex Hunter makes an important point, this could also be a portfolio restructuring to buy HYPE through the recently launched HYPE ETF. French trader Picsou shared a dashboard revealing $53 million in inflows for this Grayscale ETF. Over $20 million in inflows were recorded on May 20 alone.
The Crucial $50 Test: What Does Technical Analysis Say?
On the charts, the price recently broke out of its 3 day order blocks. This is an extremely bullish momentum signal. The Fibonacci indicates a probable extension up to $58.2. The $59.2 peak is getting closer, and HYPE could very well break it in the coming days if ETF inflows continue to grow.
Technical indicators such as the RSI and the MACD will need to be closely monitored in the coming days to confirm whether this rally still has fuel left in the tank. In the event of a downturn, major support sits around $51.37, a level that bulls must imperatively defend to prevent a trend breakdown and a drop toward $47.
HYPE Surpasses SOL: Can It Continue?
In a bullish scenario, if HYPE manages to consolidate and flip the former $50 resistance into solid support with rising volume, a massive breakout could propel the token toward a new ATH. Fundamental catalysts and institutional interest play in favor of this optimistic outlook.
Above all, ETF inflows and any signs of euphoria will need to be monitored. Today, HYPE surpassed SOL in FDV. This milestone could push some investors to take profits.
However, from a broader structural perspective, HYPE should continue its ascent in the coming weeks. According to Daniel Cheung, cofounder of Syncracy Capital, the upside potential for HYPE is still “vastly underestimated” :
For the first time, we are witnessing a revolutionary crypto native application outside of Bitcoin and stablecoins, something most cryptocurrency investors are not used to. In every previous cycle, betting on the platform where everyone was speculating has always generated massive gains, as seen with ETH, BNB, SOL, and FTX.
While each cycle has enabled a new form of speculation, Hyperliquid will deliver a much larger outcome due to its ability to access a vastly broader Total Addressable Market (TAM), including equities, cryptocurrencies, commodities, prediction markets, and more.”
According to him, HYPE is still “cheap” at this $56 price point. Institutional players seem to be betting on the long term, but the crypto market remains unpredictable. How high can the price of Hyperliquid (HYPE) go before the end of the year? If the $59 mark is broken with volume, then $80 to $100 will only be a matter of time.
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