The recent launch of native staking on Hyperliquid’s mainnet has marked another significant milestone for the protocol in the past few weeks. It is important to note that over $300 million worth of HYPE tokens were staked within hours of the release just three days ago. This comes at a crucial period for HYPE, which has shown impressive growth since its November airdrop, surging from $3.90 to reach an all-time high of $34.96.
Currently trading at $24.34, HYPE has established itself among the top 30 cryptocurrencies by market capitalization, surpassing established tokens like Uniswap and Litecoin. With the latest introduction of 16 validators, let’s explore if HYPE can breach its previous high in early 2025.
Recent Developments Fueling HYPE’s Price Action
Hyperliquid’s ecosystem has witnessed two significant developments that could shape its price trajectory. The launch of native staking on December 30 has already demonstrated substantial traction, with over $344 million worth of HYPE tokens staked within the first 24 hours. This staking mechanism, supported by 16 validators, allows both regular and vested token holders to participate in network security. The platform’s impressive performance metrics further strengthen its position, having generated $8.6 million in revenue from over $12 billion in trades during December alone.
This token’s daily revenue exceeding $1.5 million at press time hints at strong fundamental backing for the token’s value. Despite these positive developments, HYPE has experienced a notable price correction from its peak as the token’s current trading price represents a significant drop from its all-time high of $34.96. However, it is necessary to add that it still maintains an impressive 208% increase from its November launch price. All in all, the market’s response suggests a period of price discovery as investors evaluate the impact of these new developments.
Technical Analysis and Market Outlook: Worth The HYPE?
The HYPE/USDT chart reveals a complex market structure over the past month. After experiencing a strong upward momentum that peaked at $35.00, the token has entered a period of consolidation with a bearish bias. The current price of $24.359 sits below both the upper and lower Bollinger Bands (20, SMA), suggesting increased volatility and downward pressure.
The price action shows the formation of a descending channel since December 23, with lower highs and lower lows. Trading volume has remained relatively stable, though with notable spikes during key price movements. The MACD indicator displays minimal divergence, currently at 0.013, with the signal line at 0.022, pointing to a neutral to slightly bearish short-term momentum.
Support levels have formed around $23.600, which coincides with recent local bottoms. This level will be crucial for maintaining the token’s overall upward trajectory since its November launch. A break below this support could trigger a deeper correction toward the $20.00 psychological level. On the upside, resistance has established at $25.12, with stronger selling pressure appearing around the $28.00 mark.
Monthly Trading Chart For HYPE/USDT. TradingView
The recent staking launch hasn’t yet provided the anticipated price support, as the market appears to be in a price discovery phase. While the long-term fundamentals remain strong, the technical indicators suggest traders should watch for a potential continuation of the current consolidation pattern. The next significant move will likely depend on whether bulls can defend the $23.600 support level and push above the immediate resistance at $25.12. Given the current market structure and technical indicators, a period of range-bound trading between these levels appears most probable in the immediate term.
