Hyperliquid price rallied over 40% this week as whales showed renewed demand for the token. Can it recover back to its October highs of around $50 now that a bullish crossover has been confirmed on its charts?

According to data from crypto.news, Hyperliquid (HYPE) rose 21% in the past 24 hours to a 10-week high of $38 last check Tuesday, Feb. 3. The rally extended its gains to over 40% in the past 7 days.

Hyperliquid price gains were largely supported by renewed buying from whales. Data from HyperDash shows that whales holding $1 million to $5 million worth of HYPE tokens have been accumulating more tokens over the past week. The trend was also observed among sharks and dolphins holding $50k-$500k worth of tokens. 

Such accumulation from large buyers tends to rub off onto retail investors who often interpret these moves as signs of long term price potential. The buying activity was triggered shortly after the development team behind HyperCore, the core infrastructure powering the Hyperliquid layer 1 network, said it would support the HIP 4 proposal to expand into prediction markets.

The integration would reportedly allow fully collateralized contracts on Hyperliquid, enabling traders to wager on a wide variety of real-world outcomes. This pivot comes at a time when prediction markets have been booming lately. 

As more investors join the hype on the platform, they would be staking HYPE tokens to participate in governance or secure the network. The more HYPE tokens are staked, the more the circulating supply effectively tightens.

As reported by crypto.news, Hyperliquid’s HIP 3 upgrade has been a strong catalyst behind HYPE’s recent gains and has led to increased trading activity on the platform, especially from commodities markets like silver and gold.

Increased trading activity on the Hyperliquid network indirectly benefits the token owing to the platform’s unique buyback and burn mechanism. Notably, 97% of net fees generated from the platform are used to buy back tokens from the open market, effectively reducing the total supply and creating deflationary pressure that could support HYPE’s gains over the long run.

Hyperliquid price analysis

On the daily chart, Hyperliquid has confirmed a bullish crossover of the 20-day simple moving average over the 50-day one, suggesting that bulls have gained significant strength over bears in the short term. 

The last time such a bullish crossover occurred, Hyperliquid rallied nearly 35% in a little over a month’s time.

The MACD and Supertrend indicators also present a bullish outlook, at least in the short term. Notably, the MACD lines are trending upward while the Supertrend indicator has flashed a green signal.

Together, all these signals seem to suggest more potential upside for Hyperliquid in the weeks ahead. The key target is $51, which aligns with the 78.6% Fibonacci retracement level drawn on the chart. 

However, this prediction would be invalidated if the HYPE price falls below the 23.6% Fibonacci retracement level at $29.6, which has acted as a critical structural anchor throughout the last quarter of 2025.