Hyperliquid's price has surged over 20% in the past week, regaining support at $40, primarily driven by record trading activity in its perpetual futures market for commodities.
On-chain data shows that trading volume for oil-related perpetual contracts on Hyperliquid exceeded $1.2 billion within 24 hours, making it the second-largest trading asset after Bitcoin.
Meanwhile, as the commodity trading frenzy significantly boosts platform trading fees, expectations for token buybacks are also rising, as the protocol is required to allocate a large portion of its revenue to support HYPE tokens through its assistance fund.
Hyperliquid Price Analysis
From the daily chart, Hyperliquid's price appears to be rising within an ascending parallel channel pattern, a popular bullish continuation pattern.
In the recent rally, the price of HYPE has surpassed the previous high of $38.4 on February 3, which was considered a stubborn resistance level.
Technical indicators seem to confirm this strong momentum. In particular, the Aroon Up indicator shows a reading of 100%, while its down indicator is only at 14.29%, indicating that the upward trend is exceptionally strong and developing towards new highs.
Meanwhile, the Chaikin Money Flow index shows a positive reading of 0.16. This positive reading indicates that buying pressure is dominant, with funds steadily flowing into the asset.
Therefore, the path of least resistance for Hyperliquid's price suggests it has the potential to break through the psychological resistance level of $50. If the price can significantly surpass this key resistance level with strong bullish momentum, it may drive the price closer to its all-time high of $59.30, especially in the coming weeks if ongoing tensions in the Middle East prompt traders to turn to decentralized commodity markets.