Hyperliquid price has flashed a powerful bullish signal this week, with a sharp rebound backed by heavy whale accumulation and a key technical crossover. The question now dominating trader sentiment is whether HYPE can build on this momentum and revisit – or even surpass – its October peak near $50.
Over the past seven days, HYPE has surged more than 40%, with a particularly strong 24-hour move of around 21% that pushed the token to a 10‑week high near $38 as of Feb. 3. This rally did not appear out of thin air: it coincided with renewed demand from large holders and fresh optimism around the project’s evolving ecosystem, especially its expansion into prediction markets.
On-chain data shows a pronounced accumulation trend among whales holding between $1 million and $5 million worth of HYPE. These large wallets have been steadily increasing their positions over the past week, signaling growing confidence in the token’s medium‑ to long‑term prospects. A similar pattern is visible among “sharks” and “dolphins” with portfolios in the $50,000–$500,000 range, suggesting that the buying interest is not isolated to a few major entities.
When big players start taking positions, smaller market participants often take notice. Historically, whale accumulation in relatively illiquid or mid‑cap tokens has served as a leading indicator for broader retail interest. Retail traders tend to interpret such flows as a bet on future growth, amplifying the move as they pile in. This behavioral dynamic appears to be unfolding around Hyperliquid, feeding into the current uptrend.
The latest wave of demand arrived shortly after the team behind HyperCore – the core infrastructure of the Hyperliquid layer‑1 network – expressed support for the HIP 4 proposal, which aims to expand the ecosystem into prediction markets. This strategic move is more than just another feature upgrade; it positions Hyperliquid to tap into one of the most dynamic segments of the crypto economy.
Under HIP 4, Hyperliquid would enable fully collateralized contracts that allow users to speculate on a wide range of real‑world outcomes, from macroeconomic events to sports and political results. By building this functionality directly into its layer‑1 stack, Hyperliquid is seeking to become a specialized hub for on‑chain prediction markets, an area that has been gaining traction as traders look for alternatives to traditional derivatives and betting platforms.
Crucially, participation in these markets is expected to deepen the role of the HYPE token itself. Users entering prediction markets, securing the network, or taking part in governance would be required to stake or otherwise lock up HYPE. As more tokens are committed to protocol-level activities, the freely circulating supply shrinks, creating a form of structural scarcity that can be supportive of price in bullish conditions.
This new narrative builds on tailwinds created by the earlier HIP 3 upgrade, which has already had a noticeable impact on Hyperliquid’s fundamentals. HIP 3 unlocked additional trading capabilities on the platform, with a particular boost coming from commodity markets such as gold and silver. As liquidity and volume increased in these markets, the platform became more attractive to active traders, reinforcing a feedback loop of higher activity and stronger token economics.
One of Hyperliquid’s most distinctive features is its aggressive buyback‑and‑burn mechanism. The platform directs roughly 97% of its net fees to purchasing HYPE from the open market, subsequently removing those tokens from circulation. This structure transforms trading activity into constant deflationary pressure: the more volume the platform processes, the more tokens get bought back and burned. Over time, this can substantially reduce supply and support upward price drift, especially if demand grows in tandem.
From a technical analysis perspective, the chart has recently turned in favor of the bulls. On the daily timeframe, HYPE has confirmed a bullish crossover as the 20‑day simple moving average (SMA) climbed above the 50‑day SMA. Such crossovers are widely viewed as short‑term momentum signals indicating that buyers have taken control of the trend. The last occurrence of this pattern preceded a roughly 35% advance over just a bit more than a month, a historical context that is now emboldening optimistic traders.
Momentum indicators are echoing that constructive outlook. The MACD lines are sloping upward, reflecting strengthening bullish momentum, while the Supertrend indicator has flipped to green, reinforcing the argument that the path of least resistance is currently to the upside. When several independent signals align in this way, many technical traders treat it as confirmation of a developing bullish phase rather than a mere relief rally.
In terms of price targets, market participants are closely watching the $51 zone. This area is not arbitrary; it coincides with the 78.6% Fibonacci retracement level drawn from the previous major swing, and sits just above the October high near $50. A clean break and daily close above this band could be interpreted as a decisive reclaim of the former peak, potentially opening the door to price discovery and new all‑time highs if momentum and fundamentals continue to cooperate.
However, the bullish scenario is not without clear invalidation levels. The 23.6% Fibonacci retracement around $29.6 has served as a key structural support over the past quarters and now represents a crucial line in the sand. A breakdown below this level, especially on high volume, would signal weakening buyer conviction and could trigger a deeper correction as leveraged long positions unwind and short sellers re‑enter the market.
For traders evaluating whether HYPE can realistically reclaim its October highs, several factors merit attention. First is the sustainability of whale accumulation. If large holders continue to increase or at least maintain their positions, it lends credibility to the thesis that this rally is supported by long‑term capital rather than short‑lived speculative bursts. Conversely, any sign of heavy distribution from these wallets into strength would be a warning that smart money is beginning to take profits.
Second, the actual implementation timeline and market reception of HIP 4 will matter. Announcements can ignite rallies, but sustained uptrends typically require delivery. Traders should watch for milestones such as testnet launches, user onboarding to prediction markets, and early volume figures on newly introduced markets. Strong traction there would validate Hyperliquid’s strategic pivot and justify higher valuations over time.
Third, the broader market backdrop remains an important variable. If the overall crypto market continues to support risk‑on behavior, assets like HYPE that combine narrative, tokenomics, and technical strength can outperform. In contrast, a sharp correction in majors such as Bitcoin or Ethereum could temporarily overshadow project‑specific positives, dragging even strong altcoins lower in the short term before fundamentals reassert themselves.
Another angle is liquidity and order‑book depth on HYPE trading pairs. For price to sustainably push back above $50, there must be enough buy‑side depth to absorb profit‑taking from early holders and speculative traders. Improving liquidity typically accompanies increased platform usage, market‑maker involvement, and listing on additional venues, all of which contribute to smoother price discovery and reduced volatility spikes.
From a risk‑management perspective, traders positioning for a potential retest of $50–$51 often consider a tiered strategy. This might include scaling into positions on pullbacks above key supports like the 20‑day or 50‑day SMA, placing invalidation points slightly below the $29.6 Fibonacci level, and taking partial profits as price approaches major resistance zones. Such approaches aim to balance upside participation with protection against sharp reversals if the bullish thesis fails.
Longer‑term investors, meanwhile, may focus less on immediate technical targets and more on structural factors: the deflationary impact of the buyback‑and‑burn model, revenue growth on the exchange, user adoption of new products like prediction markets, and the overall competitiveness of Hyperliquid’s layer‑1 infrastructure relative to other specialized chains. For them, short‑term volatility can be an opportunity to accumulate rather than a reason to panic.
In summary, Hyperliquid currently sits at a pivotal juncture. Strong whale accumulation, a confirmed bullish crossover, and supportive momentum indicators are all pointing toward the possibility of a sustained move higher. The expansion into prediction markets via HIP 4, layered on top of the earlier HIP 3 upgrade and an aggressive fee‑driven burn mechanism, adds a robust fundamental backdrop to the technical story.
Whether HYPE can definitively reclaim and hold above its October highs around $50 will depend on the interplay between continued demand, successful execution of its roadmap, and broader market conditions. As long as the price remains above key supports like the $29.6 Fibonacci level and on‑chain data continues to show net accumulation, the bullish case remains intact. Traders and investors alike will be watching closely in the coming weeks to see if this rally matures into a new leg of Hyperliquid’s growth cycle or stalls before challenging its prior peak.