Hyperliquid tests a key trendline as macro headwinds drag the crypto market down. What's next?

<p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: 103%; font-size: 15px;">FUNDAMENTAL OVERVIEW</p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: 103%; font-size: 15px;"> </p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">Hyperliquid’s recent strength has been driven by a combination of strong protocol activity and favorable tokenomics. Trading volumes and open interest have continued to grow, while a large share of fees from its core perpetuals business is used to buy back HYPE through the Assistance Fund. </p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">Recent buybacks, including roughly $10 million of HYPE purchased and burned on October 5, have reinforced the supply-reduction narrative. The expansion of HIP-3, which allows third parties to create perpetual markets for assets such as stocks and commodities, is also broadening Hyperliquid’s market beyond crypto.</p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">Institutional adoption has provided another important catalyst. HYPE-related ETFs have attracted significant inflows, while institutional investors and treasury vehicles have accumulated the token. Coinbase and Kraken are also expanding access to Hyperliquid’s infrastructure, including plans for regulated US perpetual futures. </p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">Together, these developments have created a strong idiosyncratic narrative around HYPE, allowing it to outperform the broader crypto market despite the current macro and geopolitical headwinds.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 107%; font-family: Aptos, sans-serif; font-size: 15px;">Nevertheless, the broader crypto market is coming under renewed pressure as Treasury yields and the US dollar eye new highs after a jump in oil prices following renewed Houthi attacks on Saudi Arabia and a storm in the US Gulf threatening production and refining infrastructure.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 107%; font-family: Aptos, sans-serif; font-size: 15px;">US-Iran negotiations and interest rate expectations will remain the major drivers. A breakthrough would be positive for HYPE on easing inflation and rate hike concerns, while a renewed escalation in tensions could lead to a bigger selloff.</p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;"> </p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;"> </p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: 103%; font-size: 15px;">HYPE TECHNICAL ANALYSIS – DAILY TIMEFRAME</p><p></p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">On the daily chart, we can see that <a href="https://www.tradingview.com/symbols/HYPEUSD/" rel="follow" style="color: rgba(70, 120, 134, 1); text-decoration: underline;">HYPE</a> is testing a major trendline. We can expect the buyers to lean on the trendline, with a defined risk below it, to position for rally into the 105.00 level. The sellers, on the other hand, will want to see the price breaking lower to pile in for a drop into the 75.00 handle, with the 85.00 level as the first target.</p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: 103%; font-size: 15px;">HYPE TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME</p><p></p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">On the 4 hour chart, there’s not much we can add as the buyers will have a better risk to reward setup around the trendline to keep targeting new highs, while the sellers will look for a break to extend the drop into new lows.</p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: 103%; font-size: 15px;">HYPE TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME</p><p></p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">On the 1 hour chart, we have a minor downward trendline defining the bearish momentum. If the price pulls back into the trendline, we can expect the sellers to lean on it, with a defined risk above it, to keep pushing into new lows. The buyers, on the other hand, will look for a break higher to increase the bullish bets into the 105.00 level next.</p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: 103%; font-size: 15px;">UPCOMING CATALYSTS</p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: 102%; font-size: 15px;"><a href="https://investinglive.com/EconomicCalendar" rel="follow">Today</a>we have the FOMC meeting minutes. Tomorrow, we get the latest US Jobless Claims figures. On Friday, we conclude the week with the University of Michigan Consumer Sentiment survey.</p> This article was written by Giuseppe Dellamotta at investinglive.com.