Hyperliquid has defied the prevailing negative sentiment in the cryptocurrency market, with its price experiencing a notable increase of 6% even as Bitcoin fell below $72,000. As of the latest updates, Hyperliquid (HYPE) was trading at approximately $34.96, marking a 1.5% rise over the past week and a significant 29% increase in the last month.
This upward movement stands out during a time when many major cryptocurrencies have faced downward pressure. The decline in trading volume and open interest indicates that traders are not engaging in panic buying, as evidenced by a 31% drop in trading volume to $4.06 billion and a 2.42% decrease in open interest to $1.55 billion, according to data from CoinGlass.
Several key factors have contributed to the recent rise in Hyperliquid”s price. Notably, on February 4, Ripple announced that its institutional brokerage platform, Ripple Prime, added support for Hyperliquid. This integration enables institutions to access on-chain perpetuals and derivatives on Hyperliquid while managing risks alongside traditional assets like foreign exchange and fixed income. The market responded positively to this news, which helped bolster demand for HYPE amid broader market selling pressure.
Additionally, Hyperion DeFi Inc. (NASDAQ: HYPD), a publicly traded digital asset treasury focusing on Hyperliquid, declared plans to utilize its HYPE holdings as options collateral. The strategy is not aimed at taking directional bets; instead, it focuses on generating income from options premiums and staking rewards. Furthermore, Hyperion is collaborating with the Rysk protocol to establish an on-chain options vault directly on Hyperliquid, which could eventually be accessible to other institutional HYPE holders.
Another notable update is the introduction of HIP-4, which proposes fully collateralized outcomes trading for products akin to options and prediction markets. This feature is designed to attract traders who prefer defined risk during volatile periods. Following earlier enhancements that enabled permissionless markets across various asset classes, Hyperliquid has witnessed impressive growth, with over $1 billion in open interest and nearly $5 billion in daily volume.
Looking at the technical aspect, Hyperliquid”s price has shown a clear shift in trend behavior after a prolonged period of decline. The recent price action has pushed above the mid-Bollinger Band, with the formation of a higher low—the first since November—indicating a potential transition from a bearish to a neutral-bullish structure. The price has consistently closed above the upper Bollinger Band, and critical support has now shifted to the 20-day moving average.
The relative strength index (RSI) is currently in the 60-70 range, indicating strong momentum, and HYPE has successfully cleared the resistance zone between $32 and $33, suggesting market acceptance of higher price levels. With limited overhead supply until the $40 mark, maintaining a position above $32 could facilitate a push toward the $38 to $42 range, provided market conditions stabilize. Conversely, a fall below $32 could lead the price to test support around $27 to $28.
