HYPE price jumped 12% to $38.92 after Hyperliquid Strategies announced a $1 billion equity offering aimed at strengthening its balance sheet.
By Bhushan Akolkar
Editor Julia Sakovich
Updated
3 mins read
Defying the broader crypto market downside on Oct. 23, HYPE HYPE $39.41 24h volatility: 8.9% Market cap: $10.65 B Vol. 24h: $720.57 M , the native cryptocurrency of the Hyperliquid decentralized exchange (DEX), has registered a sharp 12% upside. HYPE price rally comes following $1 billion acquisition plan announced by Hyperliquid Strategies. This development has helped the DEX altcoins to recover from the weekly lows of $34.
As of press time, Hyperliquid’s native cryptocurrency HYPE is trading 12% up at $38.92, bouncing back from the support of $35. The altcoin is currently testing the key weekly resistance, breaking past which could set the stage for further rally.
This HYPE price rally comes with a 20% surge in daily trading volumes to $690 million, highlighting strong trading activity. According to the CoinGlass data, the HYPE futures open interest has surged 20% to $1.55 billion, showing that investors and traders are bullish on future price action.
The volatility over the last week has been largely due to the token unlock news creating market fear. However, the development of $1 billion in HYPE treasury has triggered renewed optimism among traders. HYPE has been under pressure amid the ASTER token rally in September, which grabbed major limelight.
HYPE price is showing a potential bullish breakout from the descending channel pattern. Breaking this could set the stage for a sustained rally upside, to its all-time high to $60.
HYPE Price eyes major breakout | Source: TradingView
On the other hand, decentralized crypto exchange Hyperliquid is working on its perpetual market expansion through the rollout of Hyperliquid Improvement Proposal 3 (HIP-3). The upgrade aims to strengthen Hyperliquid’s infrastructure and optimize deployment efficiency across its perpetual trading markets.
Hyperliquid Strategies has filed with the US SEC to raise up to $1 billion through a new equity offering. The goal is to strengthen its balance sheet and support a strategic accumulation of HYPE tokens.
According to the S-1 filing, the company plans to issue up to 160 million shares of common stock via a committed equity facility with Chardan Capital Markets. Proceeds from the offering will be directed toward general corporate operations and potential token purchases.
The firm was established through an ongoing merger between Nasdaq-listed Sonnet BioTherapeutics and special-purpose acquisition company Rorschach I LLC. The combined entity will list on Nasdaq later this year under a new ticker symbol.
Former Barclays CEO Bob Diamond, as Chairman, will be heading the leadership team with David Schamis as Chief Executive Officer.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
