In a week of frantic activity for decentralized markets, Hyperliquid’s native token, HYPE, has staged an impressive 65% rally to reach $34.5. This move, marking a two-month high, was driven by an explosion in digital asset management within its HIP-3 protocol, specialized in perpetual contracts for commodities such as gold and silver.
The platform’s open interest (OI) experienced vertical growth, jumping from $1.21 billion to over $1.73 billion in just 48 hours. According to on-chain data, this increase is not a result of short covering but rather a massive inflow of new capital into long positions, reflecting renewed trader confidence in Hyperliquid’s infrastructure.
Furthermore, the implementation of the HIP-3 framework has allowed third-party developers to launch permissionless futures markets, requiring a 500,000 HYPE deposit per contract. This mechanism has generated organic demand for the token, strengthening its utility as a governance and collateral asset, while daily trading volume in assets like silver perpetuals has approached $1 billion.
The impact of institutional adoption and key technical levels
On the other hand, the market structure suggests that the current rally is supported by efficient absorption of scheduled token unlocks for January. Despite supply pressure, industry whales have chosen to withdraw their funds from exchanges, signaling a long-term accumulation strategy that has neutralized potential sell-offs following the recent price surge.
However, the Relative Strength Index (RSI) has surpassed the 70 threshold, entering overbought territory and suggesting a potential risk of exhaustion. If the price manages to consolidate above the $35.3 technical resistance, the asset could project a new bullish target toward $42.4, solidifying its position as one of the most profitable Layer 1 networks of the quarter.
What factors could slow HYPE’s growth in the short term?
The main question for investors is whether the current euphoria for tokenized commodities can be sustained against a potential Bitcoin correction. A loss of the vital support at $30.8 would invalidate the current bullish thesis, triggering a drop toward the $26.8 zone as traders liquidate leveraged positions to lock in profits after the dizzying ascent.
In the near future, Hyperliquid’s success will depend on its ability to maintain institutional liquidity against emerging competitors in the derivatives sector. Therefore, the HYPE cryptocurrency faces a trial by fire where recurrent user retention and the stability of its blockchain will be decisive in avoiding a deep retracement that erases the gains accumulated during this expansion cycle.
