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Hyperliquid Price Forecast: Strengthening Fundamentals Could Push HYPE to $50

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Highlights:

  • Hyperliquid price is consolidating between $42.24 and $41.29
  • Consolidation points to price stabilization after days of selloffs
  • Rebound through $42.24, likely coming as core fundamentals get stronger

Hyperliquid (HYPE) is down today, mirroring the ongoing selloff across the market. At the time of writing, HYPE was trading at $41.72, down by 9.72% in the day. HYPE trading volumes have also shot up in the day, increasing by 17.41% to stand at $235.4 million. 

This is an indicator that short-term traders are either exiting their long positions or that short sellers are getting more confident that the price is likely headed lower. However, compared to many other altcoins, HYPE is holding its value much better. This is a factor that could see it start to attract more long-term holders looking beyond the short-term volatility. 

Hyperliquid Price Gains as Adoption and USDC Holdings Continue Rising

One of these factors is that Hyperliquid adoption continues to grow, a factor that is giving real value to the HYPE token. For context, data indicates that the Hyperliquid ecosystem now holds more than $5 billion in USDC. This makes it the third-largest public blockchain in terms of the use of bridged USDC. Hyperliquid also continues to connect with more networks, which means the amount of USDC it holds will continue to outpace most blockchain networks over time.

For context, Hyperliquid now allows for cross-chain USDC bridging with Arbitrum and is soon bringing Circle into the fold. All these integrations mean more liquidity on the Hyperliquid network, which is, by extension is likely to draw in more users. The result is that HYPE, the cryptocurrency that underpins the whole Hyperliquid ecosystem, will likely go up in value as well. 

Hyperliquid In the Process of Strategic Expansion

Besides the growing liquidity through USDC, Hyperliquid is also currently engaging in strategic expansion. Recently, Valantis Labs, a DEX, has invested in staked HYPE. Staked Hype is the second biggest liquid staking token in the entire Hyperliquid ecosystem. Under the deal, Valantis Labs now has a total investment in Staked Hype valued at $180 million.

The deal will also allow Valantis Labs to manage the Hyperliquid sHYPE ecosystem, bringing in their expertise and helping grow the Hyperliquid ecosystem. The move has also boosted the Hyperliquid liquid staking ecosystem by bringing its total value locked to $2.26 billion. According to Valantis Labs CEO, the move will help in improving competitiveness. For the Hyperliquid token, this means more value growth going into the future. It positions for a potential rally to prices as high as $100 as the trading platform continues to eat into the market share of CEXs.

Hyperliquid Smart Contracts Ecosystem Boosts Value Potential

The Hyperliquid smart contract ecosystem is also on an exponential growth trajectory. Data indicates that the Hyperliquid smart contract space now boosts a total value locked of $2.21 billion. The growth in the smart contract space has correlated with the Hyperliquid price, which has grown by over 1000% in the past year.

Now that Hyperliquid is more established and its smart contract ecosystem is likely headed for more growth, the odds are that the value of the HYPE token will also continue growing. It is a factor that could cushion HYPE from a significant price drop even as the broader market faces turbulence. 

Technical Analysis – Hyperliquid Price After Multi-Day Correction

After several days in the red, HYPE is currently consolidating between the $41.29 support and $42.24 resistance. If bulls take over at this level and push HYPE through the $42.24 resistance, then a rally to $50 could follow in the short term.

HYPE
Source: TradingView

On the other hand, if the bearish sentiment across the market pushes HYPE through the $41.29 support, then a correction to $40 could follow in the short term. Of these two scenarios, the odds are higher for a rally through resistance thanks to HYPE’s strengthening fundamentals. The broader market also appears to be entering a consolidation phase, a signal that the selloff is over.

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