Hyperliquid [HYPE] skyrocketed in the second quarter, soaring by +204% and setting two new all-time highs. However, a significant sell-off of $40 million worth of HYPE tokens could test its resistance in the third quarter. Analysis of the challenges and outlook for investors.
Hyperliquid [HYPE] has established itself in recent months as a reliable alternative to Bitcoin [BTC]. In the second quarter, the token recorded a spectacular increase of +204%, reaching two new all-time highs at $45.83 with trading volume exceeding $200 billion. With a significant update planned soon, the third quarter is shaping up to be a true test of resistance for HYPE.
Until now, Hyperliquid didn’t allow users to generate yield on staked HYPE, limiting its utility primarily to governance and protocol alignment. However, a crucial update scheduled for July 15 will change the game.
HYPE holders will now be able to convert it to kHYPE, a token that generates real yield. This evolution radically transforms Hyperliquid, transitioning it from a simple utility token to a genuine revenue-generating asset.
Despite a slight decline after reaching $45, Hyperliquid showed solid bullish momentum in the second quarter. The $40 million in HYPE now entering the system could serve as a springboard for a new surge, particularly with the conversion of HYPE into an asset integrated into DeFi.
This increase in market cap might not only be speculative but could also take on a more systemic character. Indeed, no significant decrease in leverage has been observed despite a rise in Open Interest to an all-time high of $1.98 billion, a sign of persistent bullish conviction.
Thus, with HYPE holders now able to transform it into a productive asset, the next phase for Hyperliquid could well exceed mere speculation, establishing itself in a more fundamental dynamic.
In summary, the $40 million token rotation represents a key element to watch for investors interested in the Hyperliquid ecosystem. With a major protocol evolution on the horizon, the third quarter will be decisive in evaluating the resilience and long-term upside potential of the token.
From a technical perspective, HYPE should reach $56 in the coming days or weeks, according to the MRC. Indeed, it broke through the $40.8 resistance overnight and now has a clear path to a new ATH. However, HYPE will first need to break its previous high of $45.
To invest on BitMart and easily purchase the HYPE token, here’s a step-by-step guide :
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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