Hyperliquid rises over 14% as major token burn and platform expansion boost demand

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Hyperliquid surges 14.16% today to $91.35

Highlights

Hyperliquid permanently removed 49.87 million HYPE tokens through a burn mechanism tied to protocol revenue exceeding $1.38 billion.
Over the past 30 days, $63.94 million was directed to token buybacks, and major collaborations were announced with Intercontinental Exchange and Payward for regulated perpetual markets.
HYPE/USD trades near session highs in a range of $84.07 to $95.4 with bullish trend signals, but overbought technical readings and mixed momentum indicators point to possible near-term exhaustion.

Supply contraction and revenue growth fuel protocol-driven buybacks

Hyperliquid permanently removed 49.87 million tokens, representing a burn of nearly 5% of its HYPE supply, through on-chain mechanisms tied to protocol revenue surpassing $1.38 billion. The protocol also directed $63.94 million to buybacks over the last 30 days, leading all crypto protocols in recent holder revenue. Recent collaborations with entities like Intercontinental Exchange and Payward (Kraken's parent) were announced to launch regulated perpetual markets using Hyperliquid's infrastructure, and new trading interfaces were rolled out in partnership with Pump.fun.

Anton Kharitonov, expert at Traders Union, takes a guarded view on HYPE’s surge despite headline-grabbing buybacks and token burns. He sees strong short-term demand and institutional interest, but warns that overbought signals and negative momentum readings undermine the rally. The technical picture is mixed, with most indicators pointing towards buyer exhaustion rather than trend continuation. Recent partnerships are positive yet do not erase volatility risks and the potential for swift reversals below $89.85. "Traders should not chase the current trend blindly — I recommend tight stops, as the short-term euphoria may quickly turn into profit-taking."

Viktoras Karapetjanc, expert at Traders Union, highlights robust fundamentals and a dynamic growth trajectory. He expects the protocol’s billion-dollar revenue, aggressive token reduction, and institutional partnerships to reinforce bullish sentiment. Even with technical consolidation, the market structure remains constructive and offers multiple opportunities. Karapetjanc sees further expansion as likely, underpinned by increased credibility and new trading venues. "This setup supports additional upside for HYPE — I anticipate fresh highs if positive catalysts persist."

Jainam Mehta, market strategist, notes HYPE’s position above all major moving averages but also sees divergences between price action and momentum oscillators. He considers the persistent volatility and mixed momentum signals as grounds for tactical caution. A sideways range is likely unless either $95.4 or $89.85 is decisively breached. "If near-term exhaustion triggers a reversal, contrarian entries near major support could offer attractive risk-reward."

Bullish alignment faces mixed momentum amid overbought signals

HYPE/USD is trading above its 20-day, 50-day, and 200-day moving averages at $80.39, $84.8, and $65.95, respectively, highlighting bullish momentum across short-, medium-, and long-term trends. The nearest resistance is the near-term ceiling at $95.4, with immediate support at $89.85; the overall structure remains supported by a bullish 50-day versus 200-day alignment. Momentum signals present a mixed backdrop. The Moving Average Convergence Divergence (MACD) and Average Directional Index (ADX) both indicate selling pressure, and the Relative Strength Index (RSI) sits in neutral territory at 48.31 with a sell forecast. The Stochastic RSI is at 93.22, flagging overbought conditions, and the Commodity Channel Index (CCI) signals neutrality. Bull/Bear Power (BBP) at 2.77 shows buyers are currently dominating, also flagging an overbought environment. The Awesome Oscillator suggests a neutral tone. The last trade was at $91.35, up $11.33 or 14.16% for the day after an upside gap of 0.67 (0.84%). The price is near the session high, with intraday volatility at 14.91%. Intraday dynamics show strength toward new highs, but momentum readings and oscillators diverge, pointing to a potential loss of steam or brief exhaustion.

Earlier, analysts noted that HYPE maintained bullish technical alignment even as momentum indicators signaled divergence, prompting caution around potential volatility and possible trend exhaustion. The current analysis adds evidence of further gains following token burns and new institutional partnerships, but recommends monitoring for a decisive break of either $95.4 resistance or $89.85 support as the main catalyst for the next move.

Source of Data: HYPE Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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