Hyperliquid Is on Fire as Kraken Listing Looms and Traders Ask How Far HYPE Can Run

Hyperliquid Price Surge Accelerates as HIP-3 Trading and Major Listing Fuel Momentum

The cryptocurrency market has been jolted by a sharp rally in Hyperliquid’s native token, HYPE, as prices surged past the $34 level in a move that has outperformed most of the broader market. In just 24 hours, the token climbed more than 24 percent, pushing Hyperliquid’s market capitalization close to the $10 billion mark and placing the project firmly in the spotlight.

The rally is not being driven by speculation alone. A combination of a major centralized exchange listing, rapidly growing on-chain activity, and a powerful short squeeze has created a perfect storm for price acceleration. For many traders, Hyperliquid is no longer a niche derivatives platform but a fast-emerging force in crypto trading infrastructure.

Kraken Listing Draws New Liquidity and Visibility

One of the most immediate catalysts behind the surge is the highly anticipated Kraken spot listing. Trading for HYPE on Kraken officially begins today at 15:00 UTC, opening the door to a broader audience of retail and professional investors.

Source: Xpost

Listings on large, regulated exchanges often act as validation events. Kraken is widely regarded as one of the most trusted trading platforms in the industry, particularly among institutions and compliance-focused investors. For Hyperliquid, the listing significantly expands its visibility and reduces friction for new buyers who may have previously avoided decentralized or lesser-known venues.

Even before the first Kraken trade executes, large wallets have begun positioning aggressively. On-chain data shows that a single address recently acquired approximately $9.8 million worth of HYPE, signaling strong conviction from high-capital participants. Such moves often precede periods of heightened volatility and sustained interest.

HIP-3 Introduces Real Utility Beyond Crypto Speculation

While exchange listings often spark short-term excitement, Hyperliquid’s deeper strength appears to be rooted in its product evolution. The introduction of HIP-3 has fundamentally expanded what can be traded on the platform.

HIP-3 allows users to create permissionless perpetual markets not only for cryptocurrencies, but also for real-world assets such as commodities. This innovation has already begun to reshape trading behavior. On January 27, silver perpetual markets on Hyperliquid recorded more than $1.2 billion in trading volume in a single day, a figure that rivals activity seen on established centralized exchanges.

This surge in commodity trading suggests that users are engaging with the platform for genuine trading purposes rather than purely speculative token plays. As volume grows, so does fee generation, directly benefiting the HYPE token through its economic design.

Token Buybacks and Burns Strengthen the Long-Term Case

Hyperliquid’s fee model is another key element supporting the rally. The protocol allocates up to 97 percent of trading fees toward buying back and burning HYPE tokens. This mechanism steadily reduces circulating supply while tying token value directly to platform usage.

As HIP-3 volumes increase, buybacks accelerate, creating a feedback loop where higher activity leads to lower supply. Many traders view this structure as fundamentally healthier than inflationary token models that rely heavily on emissions.

In an environment where many projects struggle to demonstrate sustainable revenue, Hyperliquid’s fee-driven model has become a central talking point among analysts evaluating whether the rally is backed by real fundamentals.

Short Squeeze Adds Momentum to the Breakout

Beyond organic demand, the rally was amplified by a significant short squeeze. Over the past 24 hours, more than $25 million in HYPE futures positions were liquidated, with roughly 93 percent of those positions betting against the price.

When short sellers are forced to close positions, they must buy the underlying asset, creating sudden upward pressure. This dynamic can produce rapid price movements, particularly when liquidity is already tightening due to strong spot demand.

The combination of forced buying from liquidations and organic accumulation helped propel HYPE decisively above key resistance levels, accelerating the breakout.

Technical Structure Confirms a Strong Break

From a technical perspective, the move has been decisive. HYPE convincingly cleared the long-watched $30 to $32 resistance zone, a level that had previously capped upside momentum.

Source: CoinMarketCap

Key indicators reinforce the bullish structure:

The relative strength index is hovering near 78, signaling strong buying pressure but also short-term overheating.
The MACD has turned firmly positive, confirming bullish momentum.
The 20-day moving average near $24.70 now serves as a solid support level.

As long as the price remains above $30, the broader trend structure remains intact. Pullbacks above this level are generally viewed as consolidation rather than reversal.

What Comes Next for HYPE Price

Looking ahead, several scenarios are being closely watched by traders.

In a bullish continuation case, sustained volume following the Kraken listing could push the price toward the $38 to $40 range. This would likely require continued growth in HIP-3 trading activity and stable sentiment across the broader market.

In a more neutral scenario, profit-taking could lead to sideways movement between $32 and $36 as the market digests recent gains. This type of consolidation would not necessarily weaken the trend, especially if volume remains elevated.

In a bearish short-term case, a pullback toward $30 is possible if momentum cools or if broader market conditions turn risk-off. However, such a move would still be considered healthy as long as the $30 level holds as support.

Is the Rally Sustainable

The sustainability of the HYPE rally depends on several structural factors rather than headline-driven hype.

The project is currently supported by real trading demand driven by HIP-3, growing participation in non-crypto markets such as commodities, aggressive token buybacks, and increased exposure from a major centralized exchange listing.

At the same time, technical indicators suggest the market is temporarily overbought. Short-term corrections are common after such rapid advances and do not necessarily undermine the broader trend.

Long-term strength will depend on whether Hyperliquid can continue attracting new users, maintain high trading volumes across multiple asset classes, and execute reliably as activity scales.

A Shift in How Traders View Hyperliquid

What stands out in this rally is not just the magnitude of the price move, but the narrative shift surrounding Hyperliquid. The platform is increasingly viewed not as a speculative experiment, but as a serious trading venue competing for volume across both crypto-native and traditional asset categories.

If current trends persist, Hyperliquid’s recent surge may be remembered not as a short-lived spike, but as the moment when the protocol crossed into a new tier of relevance within the global trading ecosystem.

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