The crypto market is no stranger to volatility, but sometimes certain tokens make more headlines than others. Hyperliquid (HYPE) has been one of those tokens lately, with its price surging 9.45% in a single day. As of October 23, 2025, HYPE has reclaimed key technical levels, reaching a value of $38.02, fueled by a combination of institutional interest and whale trading activity. But what’s driving the sudden bullish momentum? Let’s break it down.
A Big Catalyst: Hyperliquid’s SEC Filing
One of the most significant developments for Hyperliquid recently was its filing with the U.S. Securities and Exchange Commission (SEC). The company filed an S-1 registration statement, signaling its intention to raise up to $1 billion through a 160 million share offering. This type of move often catches the attention of both retail and institutional traders, as it could provide Hyperliquid with the resources to enhance its infrastructure and make key investments, potentially including buying back its own $HYPE tokens.
In addition to this filing, the company’s plans to use part of the fund for HYPE token purchases were highlighted in their release. This news not only generated bullish sentiment but also raised expectations for increased demand for HYPE tokens in the future. As a result, traders are now monitoring this space for further developments, eager to see whether Hyperliquid can capitalize on this momentum.
HYPE Price Analysis: Reclaiming Technical Levels
Looking at HYPE’s price chart, there are some key technical indicators signaling potential further upside. One of the most notable movements has been the token’s ability to reclaim its 200-day Simple Moving Average (SMA) at $37.41. The 200-day SMA is a critical level that traders often use to gauge the longer-term trend of an asset. A reclaim above this level is often seen as a sign of strength.
Moreover, HYPE price successfully tested the 61.8% Fibonacci retracement level at $35.84, indicating that a potential reversal is in play. After recovering from recent lows around $34.60, the token has steadily climbed, now challenging the high of the day at $38.38. Despite the slight bearish crossover in the MACD indicator, the Relative Strength Index (RSI) at 38.79 signals an oversold bounce, providing additional confirmation for the ongoing price recovery.
Resistance at $41.76: For HYPE to continue its upward trajectory, traders are looking closely at the $41.76 resistance level. A sustained break above this level could signal the next phase of momentum, with further rallies expected. As HYPE stays above the 200-day SMA, the confidence that institutional investors will continue to participate in the market could bolster the price action further. If the token manages to close above $41.76, it could push HYPE closer to its previous highs, with the $45–$50 range becoming a potential target.
Whale Activity and Increased Volume
Another contributing factor to Hyperliquid’s bullish trend is the increased activity from whale traders. These large investors have been taking sizable positions in HYPE, often using leveraged long positions. Whale trades tend to drive price movements and amplify market sentiment, and that is exactly what we’re seeing here.
The volume spike is a clear indication that the market is eagerly anticipating a potential trend reversal. When whales pile into leveraged positions, it can lead to short squeezes, further accelerating the price rally. The increase in volume suggests that the market is positioning for volatility, and many traders are betting on further upside.
Additionally, the futures market plays a critical role in this development. According to data from CoinGlass, Hyperliquid’s open interest surged past $2 billion, before stabilizing around $1.5 billion. This surge in open interest is another bullish sign, as it typically reflects growing confidence among traders in the token’s future performance. Historically, spikes in open interest have coincided with price rallies, suggesting that the market is preparing for more upward movement.
Hyperliquid Open Interest Update
The open interest figures indicate that more traders are positioning themselves for volatility. Large leveraged positions by whales often signal strong faith in future price movements, keeping sentiment alive and risk firmly in play. This can create a snowball effect, as traders who are late to the party may rush in to capitalize on rising prices, further driving the price upward.
The strong bullish setup is also being supported by the fact that Hyperliquid’s futures contracts are attracting attention from both institutional players and retail traders. As more market participants are positioning themselves for potential upside, the market sentiment has shifted towards optimism. Traders are watching closely to see if this trend holds in the coming days.
What’s Next for Hyperliquid (HYPE)?
The future of Hyperliquid largely depends on whether the token can sustain its bullish momentum and break through key resistance levels. A close above the $41.76 level would likely ignite a rally toward higher price points. On the flip side, if HYPE fails to clear this resistance, the price may struggle to make further progress, and a consolidation phase could follow.
However, given the bullish fundamentals behind Hyperliquid—ranging from its successful SEC filing to increased whale activity—the outlook remains positive. If the company is successful in its $1 billion fundraising efforts, it could provide the necessary capital to push the price higher in the longer term, especially if it follows through on its plans to buy back its tokens.
Conclusion: Is Now the Time to Buy Hyperliquid?
The recent surge in Hyperliquid’s price is no accident. A combination of strong technical indicators, bullish sentiment fueled by the SEC filing, and increased whale participation has set the stage for further price action. Traders are keeping a close eye on the $41.76 resistance level, which could act as the key to unlocking even higher levels.
With a significant increase in trading volume, strong futures open interest, and a potential $1 billion fundraise in the works, Hyperliquid looks poised for future growth. If HYPE can maintain momentum and break through key resistance levels, it could present an excellent opportunity for traders to capitalize on the next wave of bullish sentiment.
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