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The Hyperliquid logo. / Courtesy of Hyperliquid

Hyperliquid (HYPE) has successfully rebounded, turning upward amid the recent cryptocurrency market correction. While Bitcoin and major altcoins continued their sluggish performance, HYPE demonstrated strength by recording an increase of nearly 10% in a day. Analysis suggests that the growth of the Hyperliquid ecosystem and capital inflows into HYPE spot ETFs fueled the price rally.

According to global cryptocurrency market tracking site CoinMarketCap as of 9:00 AM on the 12th, HYPE traded at $59.64, up 10.89% from 24 hours prior. Despite undergoing a correction phase over the past week, its monthly growth rate exceeded 46%.

HYPE is the native token of Hyperliquid, a decentralized exchange (DEX). Hyperliquid specializes in perpetual futures trading and features a mechanism where a significant portion of generated transaction fee revenues is used to buy back HYPE tokens. This creates a virtuous cycle where increased trading volume drives platform revenue, which in turn triggers buyback demand for the token. As a growing number of investors look to reduce their reliance on centralized exchanges (CEXs), Hyperliquid's trading volume is expanding rapidly. Analysts note that rising expectations for platform growth are consequently sustaining the upward momentum of HYPE prices.

In particular, continuous capital inflows into spot ETFs have improved investor sentiment. ETFs serve as a pipeline allowing institutional investors and traditional financial institutions to access the cryptocurrency market more easily. Industry observers believe that recent moves to launch HYPE-related ETF products, paired with consistent inflows of new capital, are providing a positive boost to the price. According to data from SoSoValue, HYPE spot ETFs recorded a net inflow of $2.78 million on the 11th alone. Cumulative net inflows have surpassed $155 million. The fact that net inflows persisted even as the broader cryptocurrency market faced a correction is interpreted as a signal of resilient investment demand.

Technical indicators are also encouraging. HYPE recently broke above its 50-day exponential moving average (EMA) at the $53 mark, reclaiming its medium-term upward trend. Generally, a breakout above the 50-day EMA is taken as a signal that buying momentum is returning. Some market analysts suggest that if ETF inflows hold steady and Hyperliquid's trading volume continues to rise, the door remains open for further upside.

Blockchain media outlet Cointelegraph reported, "HYPE has recently cleared the upper bound of a 'bullish pennant' pattern following its upward move," adding that "the technical target price stands around $105.30."

However, warnings remain regarding potential volatility driven by the sharp short-term rally. Because HYPE has gained more than 40% over the past month, profit-taking sell orders could emerge. Furthermore, variables such as Bitcoin's price trajectory, US monetary policy, and the global macroeconomic environment continue to pose broader risks that could impact the overall altcoin market.

                                                                                                              Kim Yun-hee