Despite the strong exchange growth and a gradually turning bullish market, Hyperliquid’s HYPE token struggles with high supply. Amidst increasing pressure over the immediate supply zone, HYPE token price clings at the crossroads for a narrow bullish escape.
By Vishal Dixit
Edited by Julia Sakovich
Updated
3 mins read
As the crypto market remains at a $3.4 trillion valuation, the Fear and Greed Index reflects a neutral sentiment at 57, amid the chances of a bullish recovery in January 2025. Hyperliquid HYPE $23.85 24h volatility: 2.7% Market cap: $7.94 B Vol. 24h: $117.38 M struggles to hold on to critical levels.
However, the growing whale interest in the token hints at an explosive multi-bagger rally later in 2025.
In the 4-hour chart, the HYPE token price action reveals a falling channel pattern. The pullback in the bearish pattern comes after the impressive rally in December, which accounted for a price surge of 104%.
Currently, the pullback phase tests the crucial demand zone, extending between $21.84 and $22.78. This also marks a potential breakdown of the falling channel pattern, as the 4-hour candle reveals a 6.64% drop.
Photo: TradingView
Furthermore, it has increased the chances of a bearish crossover between the 50 and 100 EMA lines. Despite the bearish price action, the 4-hour RSI line continues to reflect a bullish divergence at lower levels. Hence a potential bullish comeback as the broader market stabilizes.
In such a case, a bullish comeback to the overhead resistance trendline near the 23.60% Fibonacci level will target the $26.29 peak. On a bullish front, the next potential price targets remain at $29.49 and $34.48.
For price targets later in 2025, the trend-based Fibonacci levels highlight $40 and $51.30 as the next target projections. On the downside, the breakdown of $21.00 will likely test the $18.52 support zone.
Despite the short-term pullback painting the price chart bearish, the confidence of whales in Hyperliquid remains strong. Over the past 24 hours, Hyperliquid briefly reclaimed the spot of the 20th largest token by market cap from PEPE. However, the pullback has reshifted it back below PEPE.
During the short spike, multiple whales took bullish positions in Hyperliquid. The whale 0x007 bridged and spent 3.96 million USDC to accumulate 151,277 hype tokens. The purchase occurred at an average price of $26.19.
Whales are accumulating $HYPE as #Hyperliquid reclaims its spot as the 20th-largest token by market cap from $PEPE today!
1/ Whale “0x007” bridged and spent 3.96M $USDC to buy 151,277 $HYPE at ~$26.19, 9 hours ago.
2/ Whale “0x721” spent 2.6M $USDC to buy 99,546 $HYPE at… pic.twitter.com/tFgjF823LY
— Spot On Chain (@spotonchain) January 2, 2025
Furthermore, a whale 0x721 spent 2.6 million USDC to buy 99,546 hype tokens. This purchase occurred at an average price of $26.14, driving the total hype holdings of the whale to 107,198 hype tokens. This is worth $2.76 million with a $3.32 million all-time profit on Hyperliquid.
The whale 0x602 bridged 2 million USDC and spent $911K to purchase 37,017 hype tokens. This purchase occurred at an average price of $24.60.
Recently, wallet 0x772 has transferred 1.352 million USDC from its Binance Hot Wallet to bridge and purchase HYPE tokens. Over the last 40 minutes, the wallet has deposited the entirety of USDC to the Hyperliquid.
While 0x772 continues to place orders near ~$22, the rising number of high-networth individuals buying Hyperliquid hints at a reversal rally ahead.
Despite the short-term pullback, the Hyperliquid exchange metrics are displaying a positive trend at hand. The total user count is close to reaching the 300,000 mark, with the total volume close to hitting $600 billion.
With the rising volume and growing user base, the total deposits are close to hitting $150 billion. Currently, the derivative sides reflect an open interest of $3.54 billion, reflecting a V-shaped reversal.
Hyperliquid’s strong whale accumulation, rising user base, and impressive exchange metrics, despite the short-term pullback, signal a promising long-term outlook. The token shows potential for a bullish reversal as it tests key support levels, with significant price targets of $29.49, $34.48, and beyond in 2025.
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.
Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.
