Why Is Hyperliquid Trending? Looking at the Recent Update and Price Analysis

HYPE, the native token of Hyperliquid, has surged more than 52% in the last two weeks. This move follows the announcement of a new validator update that opens participation to any user willing to commit 10,000 HYPE for one year. 

With strong technical signals and rising momentum, the token is once again drawing serious attention from traders and investors alike.

Hyperliquid Launches 21-Validator Model With Locked Staking Requirement

On April 22, Hyperliquid introduced its latest network upgrade: a validator system composed of 21 permissionless nodes. This means any user on the network can register as a validator. 

However, only the 21 largest by stake will be selected as the active set that helps validate transactions.

To join the race, users must lock 10,000 HYPE for a full year. This applies to everyone, regardless of whether they are selected. It is a clear commitment that removes a large number of tokens from circulation and introduces a new form of decentralisation. 

The model is designed to increase community involvement while ensuring validators are economically aligned with the health of the network.

The implications are significant. First, the validator lock-up reduces the number of tokens available in the market. With over 333 million tokens currently in circulation out of a 1 billion total supply, any mechanism that reduces circulating liquidity can affect pricing. 

If dozens or even hundreds of users choose to lock their tokens to participate or speculate on future validator rewards, this could create long-term scarcity.

Second, by allowing anyone to register, Hyperliquid encourages a wider pool of technically skilled users to get involved. 

It moves away from exclusive validator systems and toward a more open, community-led governance approach. This narrative often resonates strongly with investors and developers alike.

Read more: What is HyperEVM and Its Role in the Hyperliquid

HYPE Price Breaks Out of Consolidation and Targets the $20 Zone

After weeks of consolidation, HYPE has broken out from its recent low of $9.30 on April 7 to trade at $18.17 as of April 22. 

The price briefly hit a daily high of $18.67, nearly doubling in just 15 days. With a market cap now over $6 billion and trading volume at $130 million in the last 24 hours, momentum appears to be returning.

One reason for the price strength is the token’s ability to hold key support levels. HYPE is now trading well above its 50-day exponential moving average at $16.05 and sits just above the 100-day EMA at $18.34. Maintaining this support zone adds confidence for traders who are betting on further upside.

The all-time high for HYPE was $34.96, reached on December 22, 2024. At current prices, the token is down about 48% from that peak. 

However, it has gained over 379% from its all-time low of $3.81 set in November 2024. This strong bounce shows that interest in the protocol remains strong and that buyers are willing to step in when fundamentals improve.

If HYPE can hold above $18.00 and break through $20.00, it may enter a new phase of price discovery. That range previously acted as resistance in February and March. A clean move past $20.00 would suggest strong sentiment and likely draw new participants into the market.

Read more: Hyperliquid (HYPE) Price Analysis: March

Technical Indicators Support Growing Market Participation

Aside from validator-related developments, technical signals also confirm growing strength in the HYPE market. 

The Relative Strength Index, or RSI, recently moved above 64, a sign of increasing buying pressure. This puts HYPE close to overbought territory, but in many bullish trends, that can signal the beginning of continued upward moves rather than exhaustion.

The Money Flow Index (MFI), which tracks the flow of capital in and out of the token, is currently near 80. That suggests inflows remain strong and confirms that investors are not just rotating between tokens but actively allocating funds into HYPE.

Trading activity has also increased, with the 24-hour volume remaining near $130 million. This supports the recent breakout and shows that market interest is not being driven by a few large trades but instead reflects a broader base of active participation.

The rise in open interest across derivatives markets further supports this thesis. A growing number of open positions means more market participants are speculating on the direction of HYPE, and that usually leads to larger moves in either direction.

Finally, sentiment indicators remain stable. With a roughly 1:1 long-to-short ratio in futures positions, traders appear evenly split between upside and downside bets. 

However, liquidation data suggests more shorts are being closed, which could indicate that bearish traders are beginning to shift direction and support the uptrend.

What Could Push HYPE Above $20 and Beyond?

For HYPE to extend its rally and return to its previous all-time high of $34.96, several conditions would need to align.

First, validator participation must continue growing. If the number of users locking 10,000 HYPE increases, the circulating supply will continue to shrink. This will create a tighter market, especially if token demand also rises.

Second, the network needs to maintain strong user engagement. Hyperliquid currently has over $302 million in total value locked, reflecting confidence in its infrastructure. Sustained growth in this figure would signal broader adoption of the protocol and continued token utility.

Third, HYPE needs to avoid sudden sell pressure near psychological levels like $20.00. If it can close multiple daily candles above this zone, it may trigger a wave of new interest from traders who missed the initial breakout.

Finally, macro trends in crypto will also matter. If the broader market remains steady or enters a new growth phase, infrastructure tokens like HYPE often outperform. 

With a capped supply, validator incentives, and a strong market structure, HYPE is well-positioned to benefit from such conditions.

Trade HYPE Confidently on Bitrue

For traders and investors interested in HYPE, Bitrue is one of the best platforms to gain exposure. 

Bitrue offers deep liquidity, fast execution, and strong support for high-growth tokens like HYPE. Whether you are looking to enter at current prices or planning to hold through the next breakout, Bitrue provides the tools and access you need.

Bitrue also supports a wide range of DeFi, infrastructure, and layer-1 tokens, making it an ideal platform for traders who want to stay ahead of market developments. With HYPE gaining momentum again, Bitrue ensures you are well-positioned to act quickly and securely.

Read more: What is Hyperliquid? Revolutionizing DeFi

Conclusion

Hyperliquid’s recent validator update has reignited interest in HYPE, pushing the token up 52% in just two weeks. 

By introducing permissionless staking with a 10,000 HYPE lock-up, the network has added both scarcity and decentralisation. This structural change, paired with technical strength and steady user activity, sets the stage for a potential breakout past $20. 

If validator participation grows and market sentiment stays positive, HYPE could revisit previous highs. 

However, sustained momentum will depend on community engagement, demand for staking, and broader crypto trends. As always, traders should stay alert and manage risk accordingly.

Frequently Asked Questions

1. Why is Hyperliquid trending now?
Hyperliquid is trending due to its recent validator upgrade that opened staking to all users. The change requires a 10,000 HYPE lock-up, reducing available supply and sparking renewed investor interest.

2. How much has HYPE gained recently?
HYPE has increased by 52% over the past 14 days, rebounding from $9.30 to a current trading price of around $18.17.

3. Where can I trade HYPE?
You can buy, sell, and trade HYPE easily on Bitrue, which offers fast execution, high liquidity, and strong support for trending tokens like Hyperliquid.

Investor Caution 

While the crypto hype has been exciting, remember that the crypto space can be volatile. Always conduct your research, assess your risk tolerance, and consider the long-term potential of any investment.

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