Hyperliquid (HYPE) price has been consistently approaching a significant resistance zone recently. With volatility contracting, the market is brewing for a potential breakout targeting $35. Despite the recent pressure on the overall crypto market, HYPE has shown strength, accumulating gains of nearly 80% over the past year, demonstrating strong resilience and intrinsic momentum.
From a fundamental perspective, Hyperliquid's core value stems from its perpetual contract trading ecosystem. Approximately 97% of the platform's transaction fees are used for token buybacks, creating a stable buying support mechanism. Data shows that when the platform's average daily trading volume reaches $29 billion, the daily buyback amount can reach $5.82 million, clearly demonstrating the positive correlation between trading activity and token demand. In addition, protocol upgrades have also significantly boosted market participation. For example, HIP-3, which introduced permissionless perpetual markets, has facilitated approximately $83 billion in trading volume, further strengthening the ecosystem's resilience.
Technically, HYPE's daily chart has entered a clear low-volatility contraction phase, with the Bollinger Bands narrowing significantly, typically indicating an impending directional breakout. The current price is repeatedly testing the upper Bollinger Band, which has previously acted as short-term pullback pressure. Since late January, the price has formed a series of higher lows in the $26 to $29 range, indicating that buyers are increasingly willing to step in during pullbacks. The Relative Strength Index (RSI) is above 50 and trending upward, while the middle band around $29 continues to provide dynamic support, providing technical support for further upside.
Overall, HYPE is showing positive signals in both fundamentals and technicals. If the breakout above the upper Bollinger Band is accompanied by volume, $35 may become the next key target.