HYPE could rally by 80% if this key support holds

HYPE could see an 80% upside move if it follows through on a bullish setup targeting the 1.618 Fibonacci extension.

According to data from crypto.news, Hyperliquid (HYPE) was trading at $37.96, 270% above its year-to-date lows, with a market capitalization of $12.6 billion.

The token reached an all-time high of $45.57 earlier this week, buoyed by significant traction across the Hyperliquid Layer-1 ecosystem.

While the broader crypto market has recently turned risk-off due to escalating geopolitical tensions and the Federal Reserve’s decision to keep interest rates unchanged, HYPE has seen a 16.7% pullback from its peak. However, the mid-term trend remains constructive.

On the technical front, HYPE has maintained a bullish ascending channel since April, with price action respecting the 78.6% Fibonacci retracement level near the lower channel boundary.

The 20-day exponential moving average continues to rise and is currently acting as dynamic support. As long as the price remains above this level, the structure favors a continuation to the upside.

A decisive rebound from current levels could trigger the next leg higher, potentially targeting the 1.618 Fibonacci extension at $68.3, up roughly 80% from the current price level.

Conversely, a break below the 20-day EMA may signal short-term weakness, opening the door for a deeper correction toward the 50-day simple moving average at $31.52.

Institutional investment and whale accumulation ramp up

A few bullish catalysts appear to be driving HYPE’s positive outlook.

First, HYPE is increasingly being eyed by institutions to build strategic on-chain treasuries centered around the token. Nasdaq-listed biotech firm Eyenovia is putting $50 million into HYPE tokens and plans to rebrand as Hyperion DeFi, while Lion Group locked in a $600 million credit line to build a treasury around HYPE, Solana, and Sui, with plans to list in Asia.

Second, whales have also begun re-entering HYPE markets. According to on-chain tracking platform Lookonchain, a whale recently deposited $4 million in USDC on the Hyperliquid exchange to acquire HYPE, signaling renewed confidence among deep-pocketed holders. Such moves often influence retail sentiment and fuel broader market interest.

On-chain metrics further support the bullish case. Data from DeFiLlama shows that Hyperliquid’s total value locked has surged to $2.41 billion, an increase of over 80% in the past 30 days. This uptick reflects growing user activity, adoption, and capital inflow into the ecosystem.

Moreover, Hyperliquid’s revenue model adds fundamental support to HYPE’s valuation. The protocol directs 97% of its revenue toward token buybacks, creating consistent demand and supply-side pressure that favors long-term appreciation. Fee revenue and buyback volumes have steadily climbed over the last six months, reinforcing the asset’s bullish structure.

With price holding key support levels and momentum rebuilding, HYPE remains technically positioned for continuation.