Hyperliquid Bulls Take Control: Can HYPE Break $50 Next?

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• Whale accumulation on Hyperliquid is signaling growing bullish momentum.
  
• Strong revenue and sector performance support a positive outlook.
  
• Holding $40 support is critical for a potential move toward $50–$60.

Hyperliquid (HYPE) is showing signs of strength despite muted price movement over the past 24 hours. While short-term volatility remains limited, underlying market dynamics suggest the asset could be preparing for a bullish continuation in the coming weeks.

Whale Accumulation Fuels Optimism

Large holders have steadily increased their exposure to long positions on Hyperliquid’s perpetual decentralized exchange. This trend accelerated after Bitcoin (BTC) broke out, with whales expanding their bullish bets across multiple assets on the platform.

Such behavior often signals confidence in future price appreciation. Increased whale participation typically brings higher liquidity and trading volume—two factors that have historically supported HYPE’s price growth. The steady inflow of capital into the ecosystem points to strengthening fundamentals, even as broader market confirmation remains pending.

However, not all indicators are aligned. Funding rates remain negative, suggesting that short sellers are still active and paying longs to maintain positions. This divergence reflects a market that is cautiously optimistic but not fully committed to a breakout.

Price Action Holds Key Support

Technically, HYPE has maintained an upward trend since mid-January, consistently respecting a rising support line. This sustained structure reinforces the bullish narrative, especially as selling pressure appears to be weakening.

Market sentiment has also improved significantly, climbing from around 68% late last year to over 80% recently. This shift suggests growing confidence among traders.

A rebound near the $40 level is increasingly likely if current conditions persist. Should HYPE reclaim momentum and break above $45, the next upside targets sit around $50, with a more aggressive extension toward $60.

On the downside, failure to hold the $40 support could delay recovery and weaken the bullish outlook, particularly if confirmed by repeated tests of that level.

Revenue Dominance Strengthens Case

Hyperliquid continues to outperform competitors in the perpetual DEX space. The platform recently generated approximately $1.7 million in daily revenue, significantly outpacing rivals like edgeX (EDGE) and Lighter (LIT).

Also Read: Hyperliquid and $9B DOJ Bitcoin: Crypto’s Next Big Crisis?

This dominance highlights strong user activity and reinforces its position as a leading player in the sector. At the same time, the broader Perp DEX category has been one of the best-performing segments in crypto, posting gains above 40% over the past month.

Hyperliquid’s fundamentals—rising whale activity, strong revenue, and improving sentiment—point toward a potential bullish continuation. Still, confirmation through price action is essential. As long as key support holds and market conditions align, HYPE could be gearing up for its next major move.

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.