The cryptocurrency market recently experienced one of its largest liquidation events, yet Hyperliquid's native token, HYPE, has demonstrated remarkable resilience, staging a strong recovery in the immediate aftermath. Despite a staggering $96.5 million BTC-USD perpetual contract liquidation on its platform, which contributed to over $814 million in total liquidations across exchanges and impacted 164,000 traders, HYPE's price has shown a surprising upward trend.
Defying Market Chaos: HYPE's Swift Rebound
Hyperliquid's token has rebounded by 6% within 24 hours of the Monday market carnage, climbing back above $41 and extending a recovery that began after successfully defending a critical $36.51 support level last week. This unexpected resurgence is underpinned by a confluence of bullish indicators. Data reveals a surge in "whale" activity, with large wallets actively accumulating HYPE during market dips. Concurrently, exchange outflows have increased, large active addresses are expanding, and the average transaction size is on the rise, all pointing to robust on-chain strength. Sentiment in the derivatives market has also shifted, with HYPE's OI-weighted funding rate turning positive at 0.026%. This signifies that long traders are now paying short traders, a clear signal of growing bullish conviction. Furthermore, open interest has grown from $1.52 billion to $1.71 billion, indicating an influx of new capital and reinforcing upward momentum. HYPE is notably outperforming major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Binance Coin (BNB), with analysts observing strong higher-lows structures on multiple charts, suggesting a capital rotation towards Hyperliquid amidst broader market cooling.
Technical Outlook: Targeting a Breakout
Technically, HYPE's price is consolidating within a symmetrical triangle pattern, characterized by rising support and descending resistance. Each compression cycle has established higher lows, indicating that buyers are steadily gaining control. Momentum indicators corroborate this trend; the Relative Strength Index (RSI) has moved up to 48, heading towards neutral territory, while the Moving Average Convergence Divergence (MACD) histogram bars are shrinking, signaling diminishing bearish pressure. Analysts predict that if Hyperliquid's price successfully breaches the $40-$41 diagonal resistance, it could pave the way to the $44.48 zone. A confirmed breakout from the symmetrical triangle could unlock further targets at $48 and $54, aligning with projections from various market experts tracking the ongoing consolidation phase. Amidst widespread market uncertainty, HYPE's coordinated strength, backed by whale accumulation, tightening market structure, and strong community sentiment, positions it as a noteworthy asset to watch.
