Top 4 Reasons HYPE Price is Set to Go Parabolic Soon

Key Insights

• HYPE price has more than doubled in the past few months.
• The Bitwise HYPE ETF will start trading soon.
• The coin has strong technicals that may push it higher in the near term.

HYPE price has more than doubled in the past three months as it soared from the year-to-date low of $20 to $41 today. This Hyperliquid token rally may accelerate soon if it invalidates the forming double-top pattern. This article explores some of the top reasons why the HYPE token price may go parabolic soon

HYPE Crypto Price May Surge Ahead of the Hyperliquid ETF Approval

The Hyperliquid token may go parabolic in the coming weeks as traders anticipate approval of upcoming exchange-traded funds (ETFs).

In a filing last week, Bitwise shared details of its upcoming ETF, including its expense ratio and its ticker. Eric Balchunas, a top ETF analyst at Bloomberg, said this amendment normally comes a few days before the fund starts trading.

The HYPE ETF launch will make it available to American investors who are not keen on managing their keys and those who are afraid of storing them in a crypto exchange.

However, these investors will pay a steep price of 0.67%, much higher than most popular funds like those tracking the S&P 500 and Nasdaq 100.

Fortunately, more companies like Grayscale and 21Shares have filed for spot HYPE ETFs. As such, they will likely try to undercut Bitwise by charging lower fees.

Still, the main risk is that demand for these ETFs may be muted as other funds like Hedera, Dogecoin, Litecoin, and Polkadot have shown.

Technical Analysis Suggests That HYPE Price May Surge

The chart below shows that the Hyperliquid token price has soared in the past few months. It has soared from a low of $20 to $41 today. It has moved above the 50% Fibonacci Retracement level at $40.

Most notably, the coin recently formed a golden cross pattern as the 50-day Exponential Moving Average (EMA) moved above the 200-day one. This pattern typically leads to greater gains, as it confirms that short-term momentum is accelerating.

HYPE has also continued to make a sequence of higher highs and higher lows, with bulls buying each dip. It has also remained above the Ichimoku cloud indicator.

Therefore, the coin will likely continue rising if it moves above the key resistance level at $42.96. Such a move will invalidate the forming double-top pattern, a common bearish reversal signal in technical analysis. A move above that price will point to more gains, with the key target being last year’s high of $60.

Hyperliquid is Dominating the Perpetual Futures Industry

Meanwhile, Hyperliquid has become the most dominant player in the crypto trading industry, which is leading to higher network fees.

The network’s volume and open interest has surpassed that of its popular rivals like Aster, edgeX, Apex Protocol, and Grvt.

Its open interest stood at over $7.85 billion over the last 24 hours, well above Aster’s $1.95 billion and edgeX’s $905 million. This growth is because of the ongoing performance in the oil market.

The same is happening in terms of volume, with the 30-day volume rising to $188 billion in the last 30 days, much higher than other networks combined. This soaring volume is leading to higher fees and token burns and buybacks, which are making it more deflationary.

Rising Futures Open Interest

More data shows that the HYPE volume and futures open interest. Its open interest jumped to $1.73 billion on Monday, up from $1.64 billion a day earlier. The interest is much higher than the year-to-date low of $1.1 billion.

Rising futures open interest is a measure of the number of outstanding futures contracts and is a sign of rising demand.

At the same time, the token’s volume has continued to rise. It rose to over $211 million in the last 24 hours, well above other similar tokens such as AAVE, Uniswap, and PancakeSwap.

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