Hyperliquid price is approaching a key resistance level, and shrinking volatility suggests a possible breakout toward $35.
At press time, Hyperliquid (HYPE) was trading at $31.24, down 5.7% in the past 24 hours. Over the last week, it moved between $26.22 and $33.33, ending roughly 7% higher. However, the token has decreased by roughly 10% per month.
HYPE continues to be one of the better-performing altcoins despite the recent decline. Over the past year, the token has increased by about 80%, despite difficulties in the larger cryptocurrency market.
Derivatives activity has cooled slightly. CoinGlass data shows that trading volume dropped 18% to about $1.25 billion, while open interest fell 7.5% to $1.21 billion, showing some traders closing their positions.
HYPE’s price is influenced by several structural factors. The core of Hyperliquid’s ecosystem is perpetual futures trading, and the Assistance Fund for token buybacks receives about 97% of platform fees.
Increases in trading are directly correlated with increases in buybacks. For example, when trading volumes averaged $29 billion daily, $5.82 million in buybacks were generated, demonstrating a direct correlation between trading demand and token support.
Market sentiment has also been influenced by protocol upgrades. Permissionless perpetual markets were introduced by HIP-3, which produced a total volume of about $83 billion.
HIP-4 proposal aims to launch outcome trading products, combining prediction markets, options, and binary-style contracts. These additions could expand platform activity if more retail or institutional traders participate.
HYPE appears to be entering a compressed volatility phase. Bollinger Bands have tightened on the daily chart, which is frequently an indication of an impending big move.
The upper band, which has caused pullbacks in recent sessions, is being tested by the price.
The structure of the market has improved. HYPE has formed a string of higher lows around $26 and $29 since late January, indicating that buyers are intervening earlier on dips. This outlook is also supported by momentum indicators.
There is potential for more gains as the relative strength index is in the mid-50s and trending upward. Meanwhile, the mid-Bollinger Band has been offering dynamic support around $29.
A move toward $35 could ensue if HYPE breaks above $33-$34, with a possible extension to $38 if buying pressure increases. Deeper losses could retest the $26 base, and rejection at resistance could push the token back toward $29 on the downside.
