Hyperliquid's HYPE token surges 58% as commodities trading volume explodes
Following a dramatic surge in onchain activity, HYPE has achieved a textbook breakout pattern, positioning the token for a potential 45% climb toward the $50 milestone.
The native token of Hyperliquid, HYPE (HYPE), has climbed 23% in the past 24 hours to reach $33, demonstrating substantially stronger performance compared to other large-cap digital currencies. The cryptocurrency has experienced a 58% appreciation over a three-day period, reaching an eight-week peak of $34.5, coinciding with record-breaking commodities trading activity on the Hyperliquid platform.
Key takeaways:
- HYPE has experienced a rally exceeding 57% within a 72-hour timeframe, fueled by elevated commodities trading on Hyperliquid HIP-3 DEXs.
- HYPE price escapes from a months-long downward trend, targeting $50 as the next objective.
HYPE's open interest climbs nearly 50%
The recent price surge of HYPE during the past several days has coincided with substantial liquidations throughout its derivatives marketplace. Data obtained from Coinglass reveals that over $34 million in leveraged HYPE positions were liquidated during the previous 72 hours, with short liquidations accounting for $32.2 million of that total.
The token's open interest (OI) experienced a 48.7% jump during the identical timeframe to reach $1.82 billion on Wednesday, indicating the reemergence of derivatives market participants. When futures OI rises in tandem with price appreciation, it demonstrates growing investor participation, which market analysts typically interpret as bullish during upward price movements, as it usually enhances market liquidity.
The heightened investor attention toward HYPE emerged as Hyperliquid's HIP-3 decentralized exchanges (DEXs) achieved a significant milestone, with their OI climbing to an unprecedented peak of $935 million on Wednesday.
The aggregate daily trading volume throughout all HIP-3 DEXs similarly achieved an all-time high of $1.78 billion, as illustrated in the chart displayed above.
"Hyperliquid has quietly achieved an important milestone of becoming the most liquid venue for crypto price discovery in the world," Hyperliquid CEO Jeff Yan said in an X post on Monday, adding:
"With HIP-3 teams leading the way, Hyperliquid has also grown to become the most liquid venue for perps on tradfi assets."
The dramatic increase in trading volume can be traced to expanding interest in commodity markets, particularly gold and silver. As an example, Silver recorded more than $1.25 billion in trading volume over a 24-hour period on Monday, securing its position as the third most actively traded asset on Hyperliquid, trailing only Bitcoin and Ether.
The explosive growth in trading activity on HIP-3 platforms arrives during a precious metals rally, with both gold and silver persistently setting new all-time highs throughout recent months.
Gold surpassed the $5,000 threshold for the first time in its history, while silver exceeded $100 for the first time on Jan. 23 before reaching an all-time high of $117 per ounce on Tuesday.
HYPE price to $50 next?
HYPE has validated a breakout from its multi-month falling wedge formation, a technical pattern that traders frequently interpret as a bullish reversal indicator.
The breakout materialized as the price climbed above both the wedge's upper boundary trendline and the 50-day simple moving average, with these two levels now functioning as a robust support confluence in the vicinity of the $25 area.
The breakout was supported by a significant surge in trading volume (climbing 73% during the previous 24 hours), indicating renewed purchasing momentum and the potential beginning of an extended upward trend phase.
HYPE could potentially advance toward its wedge pattern's upside objective of approximately $49.8, which would constitute a 45% gain from present price levels.
This projection corresponds with Whale Factor's upside price target in the vicinity of $50, derived from a breakout above a multi-month downward trendline and Fibonacci retracement analysis.
