- The Hyperliquid price is up 6.5% even as most major cryptocurrencies decline.
- The rally is driven by token buybacks and the rollout of the Base Liquidity Pool (BLP) testnet.
- However, a risky technical pattern suggests a possible pullback.
Hyperliquid (HYPE) has climbed amid a wider market downturn, standing out as one of the month’s top performers. While many leading tokens face heavy selling pressure, HYPE’s price has risen on rising demand, substantial buybacks, and increased activity across the Hyperliquid ecosystem.
Despite improving sentiment, technical analysts caution that the rally may be vulnerable, as on-chain developments and price action present both bullish and bearish signals.
Buybacks and BLP rollout drive momentum
The recent HYPE advance is largely tied to the rollout of Hyperliquid’s Base Liquidity Pool testnet (BLP) on Hypercore, the Layer 1 chain supporting the exchange. The BLP initiative marks a notable upgrade to the protocol’s infrastructure, introducing more efficient liquidity routing and additional yield mechanisms.
As the testnet progresses, it has injected fresh energy into the Hyperliquid ecosystem. The platform’s positioning as a fast on-chain exchange plus a venue for tokenized equities—covering names such as Nvidia, Tesla, and SpaceX—has attracted new users and increased activity at a time when many competitors are seeing reduced volumes.
A second major catalyst is Hyperliquid’s aggressive buyback program. To date, the exchange has executed more than $1.3 billion in buybacks, removing over 28 million HYPE tokens from circulation. That reduction in supply is exerting upward pressure on price, especially as long-term holders lock larger amounts into staking contracts.
Staking deposits have surged nearly 60% over the past month, lowering sell-side pressure and reinforcing market confidence. Tightening circulating supply, combined with growing staking participation, helps support higher prices.
Hyperliquid’s expanding footprint in the global derivatives market is another supporting factor. The exchange now accounts for over 6% of the perpetual futures market share, placing it alongside major centralized platforms. This growth generates higher fee revenue, enabling further buybacks and strengthening the token’s fundamentals.
Bearish chart signals challenge Hyperliquid’s price rally
Even with solid fundamentals, technical indicators are signaling caution. Since June, a head-and-shoulders pattern has been developing on the daily chart. The pattern’s neckline sits near $35.50, a level that has repeatedly acted as key support. A decisive break below that zone could send HYPE toward the next support area just above $30.
Downside risk is amplified by the approaching convergence of the 50-day and 200-day moving averages. If the shorter average crosses below the longer one—a so-called death cross—it often precedes a deeper downtrend, particularly in uncertain markets.
On the positive side, HYPE has maintained levels above $40, indicating continued demand. A clean breakout above $46 would likely invalidate the bearish head-and-shoulders setup and could open the door for further gains. Traders should therefore weigh both the strong on-chain fundamentals and the developing technical risks when assessing near-term price prospects.