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HYPE, the native token of the Hyperliquid ecosystem, could experience an 80% upside if it follows through on a bullish technical setup targeting the 1.618 Fibonacci extension. Currently trading at $37.96, the token is up 270% from its year-to-date lows and holds a market capitalization of $12.6 billion.

Earlier this week, HYPE hit an all-time high of $45.57, driven by growing activity within the Hyperliquid Layer-1 ecosystem. However, the token has since experienced a 16.7% pullback due to broader market pressures, including geopolitical uncertainties and the Federal Reserve’s decision to maintain interest rates. Despite these challenges, the mid-term outlook for HYPE remains constructive.

Technical Analysis: Bullish Momentum Remains Intact

Since April, HYPE has been trading within a bullish ascending channel, with price action consistently respecting the 78.6% Fibonacci retracement level near the lower channel boundary. The 20-day exponential moving average (EMA) continues to rise, providing dynamic support for the token. As long as the price remains above this level, the technical structure favors further upside.

A rebound from current levels could propel HYPE toward the 1.618 Fibonacci extension at $68.30, representing an 80% increase from the current price. On the downside, a break below the 20-day EMA could signal short-term weakness, potentially leading to a deeper correction toward the 50-day simple moving average (SMA) at $31.52.

Institutional Interest and Whale Activity Fuel Optimism

Several bullish catalysts are contributing to HYPE’s positive trajectory:

  • Institutional Adoption: Major institutions are increasingly incorporating HYPE into their strategic on-chain treasuries. For example, a Nasdaq-listed biotech firm has allocated $50 million into HYPE tokens, while another organization has secured a $600 million credit line to build a treasury around HYPE and other blockchain projects.
  • Whale Accumulation: On-chain data reveals that large investors are re-entering the HYPE market. A notable whale recently deposited $4 million in USDC on the Hyperliquid exchange to acquire HYPE, signaling renewed confidence among high-net-worth participants. Such movements often influence retail sentiment and spur broader market interest.

On-Chain Metrics Highlight Ecosystem Growth

On-chain data further supports HYPE’s bullish case. The Hyperliquid ecosystem’s total value locked (TVL) has surged to $2.41 billion, marking an 80% increase over the past 30 days. This rise in TVL reflects growing user activity, adoption, and capital inflows into the platform.

Additionally, Hyperliquid’s revenue model provides a strong foundation for HYPE’s valuation. The protocol allocates 97% of its revenue toward token buybacks, creating consistent demand and reducing circulating supply. Over the past six months, both fee revenue and buyback volumes have steadily increased, reinforcing long-term bullish momentum.

Key Takeaways

With HYPE holding key support levels and institutional interest driving adoption, the token remains well-positioned for further gains. As technical indicators point to a potential continuation of its upward trend, the coming weeks could see HYPE revisiting and surpassing its recent highs.

Disclosure: This article is for educational purposes only and does not constitute financial or investment advice. Readers should conduct their own research before making any investment decisions.

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