HYPE Price Prediction as Key Hyperliquid Stats Sends Mixed Signals

HYPE price pulled back in the past five consecutive days, and is hovering its lowest level since October 1. Hyperliquid crypto dropped to a low of $46, down by 22% from its highest point this year. It has formed a megaphone pattern, indicating further gains.

HYPE Price Forecast as Megaphone Pattern Forms

The HYPE price is stuck in a deep bear market after plunging by over 22% from the year-to-date high. It has plunged below the 50-day Exponential Moving Average (EMA), a sign that bears are gaining control.

On the positive side, the Hyperliquid crypto price has formed the highly bullish megaphone pattern on the daily chart. This pattern is made up of two ascending and diverging trendlines. In this case, the upper side of the megaphone connects the highest swings in June, July, and September.

On the other hand, the lower side of the megaphone pattern links the lowest points in June, August, and September. Forming this pattern means that the HYPE price will likely have a strong bullish breakout in the coming weeks. If this happens, the next potential target to watch will be the year-to-date high of $59.22.

However, a drop below the lower side of the ascending channel will indicate further downside, as it will invalidate the bullish outlook of the megaphone pattern.

Hyperliquid is Facing Major Headwinds

One potential reason why the HYPE price has recently entered a bear market is that the Hyperliquid network is facing significant challenges.

The first major challenge is that the perpetual futures industry, which has always outperformed, is becoming increasingly competitive, with new platforms gaining market share at a rapid pace.

Data compiled by DeFi Llama shows that Hyperliquid’s perpetual DEX platform handled a volume of $9.97 billion in the last 24 hours, $61.2 billion in the last 7 days, and $279 billion in the last 30 days.

These numbers indicate that it remains the largest player in the perps industry. However, a platform like Lighter handled over $9.52 billion in the last 24 hours, $58 billion in the last 7 days, and $187 billion in the last 30 days, respectively. This is notable, as Lighter launched its mainnet recently, meaning that it will likely surpass Hyperliquid in the near term if the trend continues.

Other perps networks like Aster, ApeX Protocol, edgeX, Orderly, and Avantis have come up and are seeing faster growth than Hyperliquid.

This competition likely explains why its key metrics are slowing down. For example, data compiled by DeFi Llama shows that the amount of fees it makes have pulled back. It made $86 million in fees in September, down from $116 million in August. Lower fees on Hyperliquid means that the number of HYPE being burned has fallen.

More data shows that the perps volume has also lost momentum in the past few weeks. The network handled $282 billion in September, from $391 billion in August.

Key Hyperliquid Metrics are Improving

On the positive side, some Hyperliquid metrics are showing significant improvements this year. For example, the total value locked (TVL) in the Hyperliquid Layer 1 network has jumped and is hovering near its all-time high.

The figure has jumped to $7.5 billion, up from $398 million in January, making it one of the best-performing layer-1 networks in the crypto industry. Some of the top dApps on the network are Kinetiq, Pendle, HypeLend, and Morpho.

The other notable metric, from Nansen, shows that the number of transactions in the network has increased by 64% over the last 30 days, reaching over 10 million, while fees have risen by 96% to $1.6 million.

Summary

The Hyperliuid crypto price has strong technicals, meaning that it will bounce back in the coming weeks. If this happens, the next target to watch will be the all-time high of $60. A move above that price will signal further gains, potentially reaching $70.