Hyperliquid is back in the spotlight after its native token, HYPE, staged a powerful rally fueled by whale accumulation and a confirmed bullish crossover on the daily chart. With price up more than 40% in a week, traders are now asking whether HYPE can push back toward its October highs near $50.
At the time of writing on Feb. 3, HYPE was trading around $38 after jumping more than 20% in the past 24 hours, marking its highest level in roughly ten weeks. The move caps off one of the strongest weekly performances among mid-cap crypto assets.
Whale accumulation sparks renewed confidence
On-chain data suggests that large holders have been driving much of the recent upside. According to HyperDash, wallets holding between $1 million and $5 million worth of HYPE have been steadily accumulating over the past week. The same pattern has appeared among “shark” and “dolphin” wallets holding between $50,000 and $500,000, pointing to broad-based accumulation rather than a single large buyer.
This type of behavior often acts as a confidence signal for retail traders, who tend to view sustained whale buying as a sign of long-term conviction rather than short-term speculation.
The renewed interest appears to have followed a key announcement from the team behind HyperCore, the infrastructure layer powering Hyperliquid. Developers confirmed support for HIP-4, a proposal that would expand the network into prediction markets.
Prediction markets and token mechanics add fuel
If implemented, the expansion would allow fully collateralized contracts tied to real-world outcomes, positioning Hyperliquid to tap into a sector that has seen explosive growth heading into 2026.
More activity on the platform has direct implications for HYPE’s token economics. Users who participate in governance or help secure the network are required to stake HYPE, effectively reducing the circulating supply.
On top of that, Hyperliquid operates a highly aggressive buyback-and-burn model. Around 97% of net platform fees are used to repurchase HYPE tokens from the open market, creating sustained deflationary pressure as trading volume grows.
Previous upgrades, including HIP-3, have already boosted activity on the platform, particularly in commodities-linked markets such as gold and silver. That trend has helped reinforce demand for the token during periods of increased usage.
Bullish crossover strengthens the technical case
From a technical standpoint, the chart has turned decisively constructive. On the daily timeframe, HYPE has confirmed a bullish crossover, with the 20-day simple moving average pushing above the 50-day average — a signal often associated with trend reversals.
The last time HYPE printed a similar crossover, the token rallied roughly 35% over the following month.
Momentum indicators support the bullish setup. The MACD continues to trend higher, while the Supertrend indicator has flipped green, suggesting buyers remain in control in the short term.
If momentum holds, the next major upside target sits near $51, aligning with the 78.6% Fibonacci retracement level from the prior downtrend. Reaching that zone would put HYPE back near its October highs.
That said, downside risk remains if the move loses steam. A drop below $29.6, which corresponds to the 23.6% Fibonacci retracement level, would weaken the bullish structure and invalidate the breakout scenario.
