The HYPE token on the Hyperliquid platform saw a sharp increase of over 16% in a 24-hour period on May 22, reaching $32.50. This surge was driven by optimistic forecasts and record metrics.
Arthur Hayes' Influence on the Market
Arthur Hayes returned to the crypto market with a forecast for HYPE, stating a target of $100. His comments attracted traders' interest, as he referred to the $1.1 billion long position in Bitcoin as 'the best advertising for $HYPE'. This statement, lacking technical context, resulted in active trading actions.
Hyperliquid's Fundamental Metrics
The Hyperliquid platform demonstrated some of its strongest metrics to date. On May 22, open interest surged to $8.9 billion, marking a record high, while daily trading fees surpassed $5.4 million. The total value locked in USD Coin (USDC) reached $3.2 billion, significantly higher than the previous week. The increase in trading fees is drawing attention in DeFi circles.
Technical Analysis of HYPE
Technical analysis indicates that HYPE has exited a rising channel that limited its gains for the majority of May. The daily RSI reached 78.50, indicating overbought conditions. HYPE's price peaked at $31.56, with bulls now targeting the $35.37 level, which previously acted as resistance. However, with the current RSI levels, confirmation of continued momentum is necessary.
Thus, the HYPE token's rally amidst Arthur Hayes' comments and strong metrics from Hyperliquid highlights the market's interest and risk appetite. Trader expectations remain high, and further market developments may significantly impact price levels.
