Hyperliquid's native token, HYPE, has rallied sharply, gaining nearly 20% in the last 24 hours to trade around $70.44. The surge follows comments from President Donald Trump suggesting that the Commodity Futures Trading Commission (CFTC) is actively working on a compliant pathway for Hyperliquid to operate in the United States.
According to CoinGecko, HYPE climbed from roughly $58 to briefly touch $72 before settling near its current level. The token's seven-day gain now stands at 23.2%, with most of the move occurring in two distinct bursts—first through $62, then a push toward $70.
Regulatory Progress Fuels Optimism
President Trump's remarks, made at a White House event on August 19, indicated that CFTC Chair Michael Selig is focused on bringing Hyperliquid into the US market in a “fully compliant and legal fashion.” This statement added new detail to earlier reports that Hyperliquid was exploring a regulated entry into the US.
Regulatory records show that discussions between Hyperliquid and US agencies had already taken place. CFTC Innovation Task Force documents reveal that Hyperliquid Labs and Hyperliquid Strategic met with the regulator on July 15, following a meeting with the SEC's Crypto Task Force a day earlier. According to an SEC memorandum from that July 14 meeting, Hyperliquid representatives discussed the protocol and a “clear, regulated pathway” that could allow Americans to access onchain markets deployed on Hyperliquid.
The regulatory push is particularly significant for Hyperliquid because the protocol specializes in perpetual futures, a product that has faced stricter restrictions for US retail traders compared to many offshore markets.
Market Context and Broader Rally
The HYPE rally was supported by a broader uptick in cryptocurrency prices. Bitcoin pushed toward $69,000 during the session, while Ether moved back above $2,000. The market move was accompanied by nearly $2 billion in liquidations across crypto positions.
Additional US policy developments also contributed to the positive sentiment. The Treasury increased certain longer-dated bond buybacks, and the SEC proposed a new framework for crypto offerings. President Trump also urged Congress to advance the stalled CLARITY Act, adding another layer of regulatory news to the session.
Technical Analysis: Key Levels to Watch
On the daily chart, HYPE's rally has pushed the token back toward the upper part of its recent trading range, but trend-strength indicators have not yet confirmed a fully established uptrend. The Average Directional Index (ADX) has risen sharply to 22.60 after dipping into the low teens earlier in August. An ADX below 20 typically signals a weak trend, while a sustained move above 25 would provide stronger evidence that the breakout is developing into a more established directional move.
The daily Fibonacci Bands place the upper band near $82.95, offering a potential upside target if buyers can first clear the recent June and July highs. An intermediate resistance area sits around $73.39, close to where previous rallies struggled. A sustained daily close above $73.40 could open a path toward the $80 psychological level, followed by the upper Fibonacci Band near $83. On the downside, a rejection at current resistance could send HYPE back toward $67.50 and $62, where the latest breakout accelerated.
The 4-hour chart presents a more bullish picture. HYPE is trading well above all four exponential moving averages (EMAs), with the 20-day EMA at $62.55, the 50-day EMA at $59.53, the 100-day EMA at $58.29, and the 200-day EMA at $58.07. The EMAs are stacked in bullish order, with faster averages above slower ones. However, the sharp distance from the 20 EMA highlights how quickly price has separated from its recent trend.
The 4-hour Relative Strength Index (RSI) has jumped to 83.94, well above the conventional overbought threshold of 70. While an RSI above 80 does not necessarily signal the end of a rally, especially during a strong breakout, it indicates that short-term momentum is stretched and leaves HYPE vulnerable to consolidation or a pullback before another attempt higher.
For the bullish case, $72 to $73.40 is the first area HYPE needs to clear. A confirmed breakout above that zone would put $80 in play before the daily Fibonacci Band near $82.95, representing an increase of close to 18% from the current price. On the downside, the 4-hour chart places the first major dynamic support around the 20 EMA at $62.55. The $58 to $60 region carries additional support from the 50, 100, and 200 EMAs, although a retreat that far would erase a large part of the August 20 breakout.
As Hyperliquid continues its regulatory push, market participants will be watching for further developments that could solidify its US entry. The recent price action reflects growing optimism, but traders should remain mindful of the technical levels that could dictate the next move. For more on Hyperliquid's regulatory journey, see this earlier update and this analysis of record open interest.
This article is for informational purposes only and does not constitute financial advice.
