Decentralized Perpetual Futures Trading Leader Sees Surge in Volume and Token Price
Hyperliquid, the dominant player in the decentralized perpetual futures trading industry, has seen a significant surge in volume, leading to a 10% increase in its token price. On January 12, the token rose to $23.10, its highest level since Sunday, despite a decline in other popular cryptocurrency prices.
Market Share and Trading Volume
Hyperliquid’s success can be attributed to its dominant market share in the futures trading industry. The network has processed over $747 billion in futures trades since its inception, with a 24-hour volume of $12 billion. This brings its seven-day total to $73 billion, significantly larger than its closest competitor, Jupiter, which handled $2.61 billion in the last 24 hours and $11.65 billion over the past week.
On Monday, Hyperliquid’s daily volume reached a record high of $22 billion, a substantial increase from the $640 million it handled on the same day last year. This surge was largely driven by the growing popularity of newly launched meme coins, such as Official Trump and Melania, which achieved multi-billion dollar market caps ahead of Donald Trump’s inauguration.
Technical Analysis of HYPE Token
Since December 21, when HYPE peaked at $35.10, it has formed a falling wedge chart pattern, characterized by two trendlines connecting an asset’s lower lows and lower highs. A bullish breakout typically occurs when the two lines converge, which happened on January 14, as the price rose to test the resistance level at $24.43.
The token then executed a break-and-retest pattern, pulling back to the upper side of the wedge before resuming its upward momentum. A break-and-retest is a key continuation pattern, signaling potential further gains. Additionally, HYPE has formed a small inverse head and shoulders pattern, which is often a bullish reversal signal.
Key Takeaways and Price Projections
Based on the technical analysis, HYPE is likely to see a strong bull run if it moves above the $24.43 resistance level. If this happens, the next target to watch would be $35, its December high, representing a 51% increase from the current price.
Key points to consider:
- Hyperliquid’s dominance in the decentralized perpetual futures trading industry
- The surge in volume and token price, driven by the popularity of meme coins
- The falling wedge chart pattern and bullish breakout
- The break-and-retest pattern and inverse head and shoulders pattern, signaling potential further gains
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