Hyperliquid (HYPE) is gaining traction with buybacks and institutional interest. Is it poised for a breakout?

Hyperliquid (HYPE): Price Prediction, Buybacks, and Bullish Momentum

Hyperliquid (HYPE) is turning heads with significant buybacks and growing institutional interest. EyEnovia's $35 million investment and strong buyback activity are fueling bullish sentiment. Let's dive into what's driving this momentum.

Institutional Confidence and Buyback Power

EyEnovia, a Nasdaq-listed biotech firm, recently invested $35 million in HYPE, acquiring over 1 million tokens at an average price of $34. This move signals increasing institutional confidence in Hyperliquid. Furthermore, Hyperliquid executed $3.63 million in HYPE buybacks in a single day, one of its largest on record, driven by its Assistance Fund. These buybacks occurred at an average price of $32.77, slightly below EyEnovia’s entry point, suggesting a convergence of institutional and on-chain support.

Technical Analysis and Price Levels

HYPE is currently defending a crucial technical level around $35, which previously marked its all-time high. The price has been consolidating along this former resistance-turned-support, showing signs of a bounce. This level is significant both psychologically and structurally, with recent price action forming a series of higher lows above it. As long as HYPE stays above this $34 to $35 band with volume support, the short-term bullish bias remains intact.

Short-Term Strength and Potential Breakout

HYPE is displaying short-term strength, hovering near a local support band where buyers have previously stepped in. A visible consolidation is forming just above that zone, suggesting a potential move back into the $36.80 to $37.40 range. A clean break above this range could pave the way toward the next resistance zone around $38.50 to $39.00. The trend leans bullish in the short term, with higher lows forming around the $33.80 and $34.50 zones.

Undervalued Potential

Hyperliquid is generating over $843 million in annualized revenue, surpassing Ethereum, Tron, and Solana. Despite this impressive revenue, Hyperliquid's market cap-to-revenue ratio is just 13.8x, compared to Solana's 1,437x. This suggests that Hyperliquid is undervalued and has significant potential for growth. With strong revenue metrics and active buyback support, HYPE could be laying the foundation for a broader recovery.

Final Thoughts

HYPE is showing resilience, with the $34 to $35 zone acting as a support level. The formation of higher lows and adherence to key trend structures indicate a shift in sentiment. A clean break of the $36.80 to $37.40 range could quickly lead to $38.50 and beyond. Keep an eye on HYPE – it might just surprise you!