Hyperliquid (HYPE) Gains 45% Amid Crypto Sell-Off: More Upside Ahead?

In a week marked by a brutal pullback across the cryptocurrency market, Hyperliquid (HYPE) has emerged as a notable outlier. While major altcoins like Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA) plunged by double-digit percentages, HYPE has charted a different course. As of this writing, HYPE trades at approximately $32, representing a nearly 45% increase from its price just a week prior. This stark contrast in performance has captured the attention of market observers, positioning HYPE as one of the few assets in the green on a weekly scale amidst widespread losses.

Analysts point to specific platform activity as a key driver behind this resilience. X user Sjull | AltCryptoGems noted that HYPE’s rise coincided with “a trading boom” in commodities like silver and gold on the Hyperliquid platform. This surge in activity, they claimed, has resulted in “reduced selling pressure and a technical breakout” for the HYPE token. The asset’s ability to hold its ground while Bitcoin (BTC) and other major cryptocurrencies faced significant selling pressure has been a defining feature of the recent market action.

Several market analysts have voiced optimism regarding HYPE’s trajectory, despite the shaky broader market conditions. X user Altcoin Sherpa highlighted that Hyperliquid “has held up as one of the best alts during the latest market downtrend for bitcoin,” and they do not expect that to change. While advising caution with active positions due to Bitcoin’s behavior, the analyst suggested that buying spot positions in HYPE could be a prudent strategy, indicating a belief in its underlying strength.

Other observers have echoed this bullish sentiment. X user Mizer applauded HYPE for “holding insanely well” during turbulent times and predicted the price is ready “to turbo send.” They advised that for anyone seeking long exposure, HYPE should be a priority in their portfolio. Meanwhile, analyst Crypto Chase revealed they had converted their HYPE trade into a spot position while in profit. Their outlook includes a plan to increase exposure if the price experiences a major breakdown, but their primary expectation is for HYPE to eventually retest the $50+ level once Bitcoin finds “a sustained bounce.” This collective analysis suggests a belief that HYPE’s current performance is not a fluke but could have more fuel for advancement.

However, not all technical indicators align with the bullish narrative. The Relative Strength Index (RSI), a tool that measures the speed and magnitude of recent price changes, is flashing a cautionary signal. An RSI reading above 70 is traditionally interpreted as a sign that an asset may be overbought and due for a pullback. Data shows that HYPE’s RSI recently spiked beyond this 70 threshold and, while it has since moderated to around 66, it remains elevated. This suggests the potential for enhanced volatility or a near-term correction, tempering the outlook for immediate, uninterrupted gains.

The overarching market environment adds another layer of risk. The cryptocurrency sector remains “quite shaky,” leaving open the possibility of another broad-based pullback. Such a downturn could inevitably impact HYPE, regardless of its recent standalone performance. The analysis from Altcoin Sherpa, which explicitly links caution to “the way bitcoin is behaving,” underscores this interconnected risk. Therefore, while HYPE has demonstrated impressive resilience, investors are advised to tread carefully, balancing the optimistic analyst projections against the technical warnings and persistent market uncertainty.