Hyperliquid was one of the few assets that did not end Thursday in the red. However, it was not entirely unaffected by the ensuing sell-offs.
It surged to a high of $96 but subsequently retraced sharply, closing at $88 despite recording gains exceeding 10%. Despite the pullback, Thursday marked its best daily performance in almost three months. It also retested a high not seen in more than 30 days.
The 1-day chart shows that Thursday was not the only bullish session this week. HYPE recorded notable gains between Monday and Tuesday. Friday also ended in the green, with the asset attempting to retest its previous high but failing. It subsequently experienced a significant pullback, which extended into Saturday.
HYPE is down by a few percentage points at the time of writing. Nevertheless, four of the last six daily candles have been bullish, making this one of its strongest weeks in October.
The 1-week chart offers a clearer picture of the rally’s magnitude. On this timeframe, the altcoin is up by more than 15%, marking its first positive weekly candle in six weeks.
Amid the rally, it is important to understand what triggered the sudden surge. The first two days of the week largely followed the broader market sentiment. However, fresh developments on Thursday triggered a significant wave of buying pressure.
Intercontinental Exchange (ICE) and trade[XYZ] announced plans to use Hyperliquid as the infrastructure layer for deploying perpetual futures markets for US traders. These markets will cover cryptocurrencies, equities, commodities, foreign exchange, and other real-world assets, subject to regulatory approvals. There were other fundamentals with a similar effect on price.
The collaboration could greatly benefit Hyperliquid by attracting significant trading volume to its ecosystem. It could also contribute to broader adoption of the platform.
With the current week drawing to a close on a notable high, attention is now shifting to what comes next.
How Will Hyperliquid Perform?
On the 1-week timeframe, the altcoin is trading around $87. The chart shows that several previous rallies ended around this level. If HYPE closes the week above it, there is a possibility that the coming week will see the uptrend continue.
Interestingly, the Bollinger Bands also hint at the possibility of further gains. A closer look at the chart shows that the asset recently rebounded after dropping to the middle band. The last time a similar pattern emerged, it triggered a three-week rally that ended after prices retested the upper band.
If the same pattern plays out this time, HYPE could fill the fair-value gap created during this week’s rally. It may even retest $100 within the next two weeks.
However, the latest rally was largely fundamentals-driven. As the initial excitement subsides, traders could begin taking profits, potentially shifting sentiment back in favour of the bears. The 1-day chart supports this possibility, as the altcoin is struggling to break above the upper Bollinger Band.
Following several rejections at the upper band, HYPE could retrace towards the middle band next week. Such a move would put $81 within reach.
With the two timeframes suggesting different possibilities, the question is which scenario is more likely to play out. Both remain plausible at this stage. However, a significant decline below $88 could indicate that the coming week is turning bearish. Conversely, a new daily candle holding above this level would strengthen the case for continued upward momentum.
