Hyperliquid Token Sees Significant Price Rebound Amid Rising Trading Volume

The Hyperliquid token experienced a notable price surge on Monday, reaching $25.80, a 25% increase from its lowest level over the weekend. This rebound coincided with the network’s approaching milestone in trading volume.

Trading Volume Surges to Record High

Data shows that Hyperliquid’s monthly trading volume hit a record high of $366 billion in January, surpassing the previous month’s $341 billion. Additionally, the platform’s daily trading volume jumped by 57% on Monday, reaching $16.54 billion. Over the past seven days, Hyperliquid has handled nearly $60 billion in volume, bringing its cumulative trading volume to $842 billion.

If this pace continues, the network is likely to surpass the $1 trillion mark this month, a significant milestone for the perpetual futures industry.

Market Share and Competition

As the largest player in the perpetual futures industry, Hyperliquid continues to gain market share against competitors. Its monthly volume of $58 billion far exceeded those of its competitors, including Jupiter’s $10.2 billion, dYdX’s $3.1 billion, and SynFuture’s $3.6 billion.

Protocol Fees Rise with Trading Volume

The surge in trading volume has led to a sharp increase in Hyperliquid’s protocol fees. Monthly fees jumped to a record high of $51.4 million, up from $10.4 million a month earlier.

Price Analysis and Outlook

The four-hour chart shows that the HYPE price peaked at $35.20 in December before retreating to $25.35. Recently, the token has formed an ascending channel, connecting higher highs and higher lows since January 6.

The price has moved slightly above the 25-period Exponential Moving Average, a positive indicator. It has also risen to the 38.2% Fibonacci retracement level.

Hyperliquid’s price is likely to continue rising as bulls target the key resistance level at $28.40, the highest level in January. A break above this level could signal further gains, with the next key reference being the all-time high of $35.20, representing a 40% increase from current levels.

On the flip side, a drop below the key support level at $22 could indicate further downside, with the next target being $18.88, its lowest level in January.

Key takeaways:

  • Hyperliquid’s trading volume has surged to a record high of $366 billion in January.
  • The network’s daily trading volume jumped by 57% on Monday, reaching $16.54 billion.
  • Hyperliquid’s protocol fees have risen to a record high of $51.4 million.
  • The HYPE price is likely to continue rising, targeting the key resistance level at $28.40.

Stay up-to-date with the latest news and developments in the cryptocurrency market by following Global Crypto News.

Post Views: 0