Hyperliquid’s native token, HYPE (HYPE), is up 23% in the last 24 hours to trade at $33, significantly outperforming other top-cap cryptocurrencies. The altcoin has surged 58% in the past three days to an eight-week high of $34.5 as commodity trading on Hyperliquid reached new highs.
key takeaways:
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HYPE is up more than 57% in 72 hours due to high commodity trading on the hyperliquid HIP-3 DEX.
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HYPE price has broken out of a multi-month decline and is eyeing the next $50.
HYPE’s open interest increased by almost 50%
HYPE’s rally over the past few days has been accompanied by significant liquidations in its derivatives market. According to CoinGlass data, more than $34 million of leveraged HYPE positions have been liquidated over the last 72 hours, with $32.2 million representing short liquidations.
Connected: Fundstrat’s Lee expects crypto to bounce back as precious metals cool down
Its open interest (OI) rose 48.7% over the same period to $1.82 billion on Wednesday, signaling a return from derivatives traders. The movement of futures OI along with price reflects increased investor interest, which is generally considered a positive during a bullish period as it increases liquidity.
Investor interest in HYPE surged as Hyperliquid’s HIP-3 decentralized exchange (DEX) recorded a new milestone, with their OI rising to a new high of $935 million on Wednesday.
As shown in the chart above, daily trading volume across all HIP-3 DEXs also reached a record high of $1.78 billion.
“Hyperliquid has quietly achieved a significant 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.
“With the leadership of the HIP-3 teams, HyperLiquid has also become the most liquid venue for people to trade on TradeFi assets.”
The increase in trading volumes can be attributed to increased interest in commodities including gold and silver. For example, silver took in more than $1.25 billion in 24-hour trading volume on Monday, making it the third-most traded asset on HyperLiquid, behind only Bitcoin and Ether.
The increased trading activity on HIP-3 comes amid a surge in precious metals, with both gold and silver hitting new record highs over the past few months.
Gold breached the $5,000 mark for the first time in its history, while silver crossed $100 for the first time since January 23 and hit an all-time high of $117 an ounce on Tuesday.
HYPE price to $50 next?
HYPE has confirmed a breakout from its multimonth falling wedge pattern, a setup often viewed as a bullish reversal signal.
The breakout occurred when prices rose above the wedge’s upper trendline and the 50-day simple moving average, both of which now act as a strong support confluence near the $25 area.
The breakout was accompanied by a significant increase in trading volume (up 73% in the last 24 hours), suggesting new buying interest and the possible start of a new uptrend phase.
HYPE could move towards its wedge upside target of around $49.8, which represents a 45% upside from current price levels.
This is in line with Whale Factor’s upside target around $50 based on the breakout of a multimonth downtrend and Fibonacci retracement analysis.
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