Hyperliquid price has soared this week, and is hovering at its highest swing since March 6 as the volume in its platform attempts to recover. The HYPE token rose to a high of $14.95 on Friday, up by 60% from its lowest point this month. This makes it one of the top-perfoming coins in April.
Hyperliquid volume is bouncing back
Hyperliquid is the biggest player in one of the top areas in the crypto industry: perpetual futures. Perpetual futures are similar to other futures in the stock market, with the only difference is that they don’t have an expiry date. They also use leverage to maximize returns. Most notably, one can hold these perps for a long time as long as they can maintain their margin requirements.
Hyperliquid’s volume has come under pressure in the past few weeks as investors remain concerned about its business. Some pundits on social media have warned that it may collapse like other companies in the industry like FTX. A risk is whether it can maintain its liquidity in periods of high volatility in the crypto industry.
Hyperliquid’s challenges rose after the company decided to close and delist Jelly, a new meme coin, citing market manipulation. This crisis pushed some people away from its network.
However, there are signs that the volume on its network is cralwling back. While the daily volume has dropped by 42%, the seven-day change has jumped by 24%. It handled over $7.14 billion in the last 24 hours and $58 billion in the last seven days. This gives it a 60% market share in the industry.
The other top perpetual futures exchanges like Jupiter, GMX, SynFutures, and Vertex Edge are significantly lower than what Hyperliquid handles.
A key risk facing Hyperliquid investors is that its daily token unlocks will start in November. Today, there are 333 million HYPE tokens in circulation against 999 million total supply. Beginning November 29, the network will unlock 216,580 HYPE tokens currently worth $3.23 million daily until 2028.
Token unlocks are seen as highly bearish because they increases the number of tokens in circulation.
A potential catalyst that HYPE faces is that major centralized exchanges will start listing it later this year. No tier-1 exchange has listed HYPE, with most of the volume happening in Bitget, MEXC, Gate, and KuCoin. Exchanges like Coinbase and Binance have all avoided listing the token.
Hyperliquid price technical analysis
HYPE chart by TradingView
The four-hour chart shows that the HYPE price has rebounded in the past few days as it moved from a low of $9.2560, on April 7. It has moved above the 23.6% Fibonacci Retracement point at $13.80.
The coin has moved above the key resistance level at $14.45, its highest point on April 2. It has also moved above the 25-day moving average, while the Relative Strength Index (RSI) has tilted upwards.
The token will likely continue rising as bulls target the 50% retracement level at $18.90, which is about 25% above the current level.
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