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- Hyperliquid is testing a critical support zone at $24.30; holding this level is vital for an explosive rally.
- Despite price drops, XRPL transactions spiked 40%, and the network now leads Solana in RWA market capitalization.
- Bitcoin’s volatility remains the primary hurdle, but strong fundamental growth in both ecosystems suggests long-term upside.
The cryptocurrency market is weathering a turbulent February as Bitcoin’s dip to the $64k range sends ripples through the altcoin sector. Two major players, Hyperliquid (HYPE) and Ripple (XRP), have faced significant price corrections, yet beneath the surface, strong fundamentals suggest these assets are undergoing a “healthy” reset rather than a permanent collapse.
Hyperliquid: Liquidation Hunt Leads to Buying Zone
Earlier this month, market analysts warned that a cluster of long liquidations sitting below $30 made Hyperliquid vulnerable. That prediction was realized when HYPE slid below the $28 mark, triggered by Bitcoin’s volatility. Despite this 7% dip, the decentralized exchange (DEX) continues to attract massive capital inflows, signaling long-term institutional trust.
Technically, the 1-week chart remains bullish. HYPE is currently navigating a Fibonacci retracement, with a “golden pocket” support zone between $20.48 and $28.44. Swing traders are closely watching the $24.30 level; if defended, it could serve as the launchpad for a rally back toward the $38.42 February high. However, a break below $20 would invalidate this bullish setup, shifting the focus to a bearish trend.
XRP Volume Spikes Amid Sell-Off
Ripple’s XRP has been one of the most actively traded assets recently, but not for the reasons bulls would hope. A massive surge in trading volume—up 83% on Upbit and 68% on Binance—coincided with a 6.46% price drop, suggesting that short-sellers are currently in the driver’s seat.
XRP broke below its $1.40 support, reaching a low of $1.34. While the immediate outlook appears cautious, XRP is showing resilience. If the price can flip $1.40 back into support, the path toward $1.66 reopens.
Also Read: 5 Reasons Hyperliquid Traders Are Longing the Dip Despite 9% Drop
The Case for Bullish Fundamentals
Despite the price action, Ripple’s ecosystem is arguably stronger than ever. Several key metrics support a recovery:
- On-Chain Activity: Successful daily transactions on the XRP Ledger (XRPL) jumped 40% recently, hitting 2.5 million.
- RWA Dominance: XRPL has overtaken Solana in the Real-World Asset (RWA) market cap, growing 23% in 30 days to reach $2 billion.
- Legislative Support: A proposed bill in Arizona aims to include XRP in a Digital Assets Strategic Reserve Fund, alongside Bitcoin.
While the “short-term noise” is undeniably loud, both HYPE and XRP are consolidating at critical support levels. For patient investors, these dips represent a test of the broader thesis: that utility and adoption eventually outrun market volatility.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
