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Hyperliquid ($HYPE) has rallied roughly 35% over the past seven days, climbing from around $59 on Aug. 18 to $79.50 at press time as a combination of US regulatory developments and rising activity across the Hyperliquid ecosystem drew traders back to the token.
The rally accelerated on Aug. 20, when $HYPE broke above $60 and quickly pushed through $70.
Buyers continued to control the market over the following sessions, taking the token above $80 and briefly toward $83 before some profit-taking emerged.
The strongest catalyst arrived after US President Donald Trump said on Aug. 19 that Commodity Futures Trading Commission Chair Mike Selig was working to bring Hyperliquid into the United States in a “fully compliant and legal fashion.”
$HYPE jumped following the comments as traders priced in the possibility of the decentralized derivatives platform gaining a regulated route into the US market.
The regulatory development was backed by strong activity on the platform.
Hyperliquid generated about $6.2 million in fees in a single day on Aug. 23, exceeding the combined fees of several leading blockchain networks in the comparison cited by Crypto Briefing.
The fee growth also has implications for $HYPE because part of the protocol's revenue is directed toward token purchases through Hyperliquid's Assistance Fund.
Another catalyst has come from Hyperliquid Improvement Proposal 3, or HIP-3, which allows outside builders to deploy perpetual markets on Hyperliquid.
Trade[XYZ] has become the largest participant within that infrastructure and generated roughly 55% of Hyperliquid's trading volume in August, according to Coin Metrics.
The expansion has also reduced Hyperliquid's reliance on crypto perpetuals alone.
HIP-3 builders have introduced markets tied to stocks, commodities, and indices, while trade[XYZ] has expanded into areas including chipmakers and compute-related assets.
Hyperliquid currently has hundreds of markets across native and HIP-3 deployments.
Regulatory efforts have extended to these newer markets. On Aug. 18, the Hyperliquid Policy Center and trade[XYZ] submitted a proposal to the US Securities and Exchange Commission seeking a framework for pre-IPO perpetual contracts.
The proposal asked regulators to address a path that could eventually allow US investors to access such products.
$HYPE has plenty of catalysts behind its rally, but after gaining 35% this week, the question is whether buyers can keep the momentum going.
$HYPE price action
On the daily chart, $HYPE's breakout remains technically strong despite the latest pullback.
$HYPE/$USDT 1-day price chart. Source: TradingView.
Price broke decisively above the previous June highs around $74 to $76 and subsequently reached the $82 to $83 area, establishing a new high before slipping back toward $79.50.
The Aroon indicator continues to favor the bullish trend. Aroon Up stands at 92.86%, while Aroon Down is just 7.14%.
With Aroon Up close to 100 and Aroon Down near the bottom of its range, recent highs continue to dominate the trend calculation, keeping the larger trend bullish even after $HYPE's latest red daily candle.
The Chaikin Money Flow provides another positive reading. CMF sits around 0.22, comfortably above the zero line, after rising sharply alongside the latest breakout.
The reading shows that buying pressure and capital inflows have remained strong during the advance rather than the rally taking place on weakening money flow.
Volume also expanded considerably as $HYPE broke out from the $58 to $60 area and moved through its previous highs, adding further support to the breakout.
The immediate hurdle is now the $82 to $84 region, where the latest advance stalled.
A daily close above this zone would put $HYPE back into price discovery and could open a move toward the psychological $90 level, followed by $95 and $100 if momentum remains strong.
Downside levels are becoming equally important after the steep advance.
The former breakout region around $74 to $76 is the first major area buyers would need to defend.
Losing this zone could expose $HYPE to a larger retracement toward $70, while the previous consolidation around $64 to $68 would become relevant if the breakout fails more decisively.
The 4-hour chart shows more immediate signs that $HYPE may need to consolidate before another attempt higher. See below.
$HYPE/$USDT 4-hour price chart. Source: TradingView.
The Supertrend remains bullish, with its support line currently around $72.67.
Price remains well above this level despite pulling back from the recent high, meaning the short-term trend has not yet formally reversed.
The Supertrend also sits close to the broader $72 to $76 breakout area, making the region particularly important if selling pressure increases.
However, the Stochastic RSI has dropped sharply after spending much of the rally in overbought territory.
Its %K and %D readings are now around 11.43 and 16.64, respectively, placing both inside the oversold region.
Price remaining close to its highs while the short-term momentum oscillator has already reset toward oversold territory creates an interesting setup.
If $HYPE holds around $78 to $79 and the Stochastic RSI turns upward from here, buyers could get another opportunity to challenge $82 to $84 without requiring a much larger correction first.
A failure to recover would increase the chance of another move lower.
The first area to watch would be roughly $76 to $77, followed by the Supertrend around $72.67.
A 4-hour close below the Supertrend would weaken the current bullish structure and increase the possibility of a move toward $70.
For now, the daily Aroon and CMF readings continue to support the larger uptrend, while the bullish 4-hour Supertrend shows the breakout structure remains intact.
The Stochastic RSI, however, shows short-term momentum has already weakened substantially after the rapid advance.
The $82 to $84 region is therefore the key upside test. A clean breakout could put $90 in play before attention turns to $95 and the psychological $100 level.
Losing the $72 to $76 support region, meanwhile, would be the first stronger technical warning that $HYPE's 35% weekly rally is entering a larger correction.