Hyperliquid Intensifies Buybacks as HYPE Price Eyes $50

The price of Hyperliquid (HYPE) rejected at the lower support level of its range while the entire cryptocurrency market rebounded from recent liquidations. Hyperliquid price was an exception, as it dipped into a range whose low was in the $36 region.

The crypto market of HYPE has been intensified by the acquisition of HYPE tokens through the buyback program. Additionally, the fact that Hyperliquid is edging ahead of its competitors in terms of open interest also puts it ahead, with only Lighter DEX coming close.

With that in mind, we will be exploring how buybacks and open interests could impact the price of HYPE in the coming days.

Hyperliquid Intensifies Buybacks

The Hyperliquid Assistant Fund has led the way in driving HYPE’s price upward. Less than a year ago, Hyperliquid initiated a buyback program that has been steadily increasing in value. The program has enabled buybacks of more than 35 million HYPE valued at more than $800 million.

The PNL of this program continued to rise, even though it began to decline after reaching a profit of $1.80 billion. In fact, the PNL stood at $1.348 billion at the time of writing, which increased the equity to $1.406 billion.

The essence of this program is reducing the circulating supply of tokens in the market. Consequently, prices will only increase if there is a corresponding demand that matches the decreasing supply.

A clear example is the surge past $50, which was not only driven by the altcoin season hype but also by the buyback program. However, the surge in price of HYPE was not primarily driven by that feature.

Hyperliquid Open Interest and Volume Surge

The open interest and volume of Hyperliquid were also rising, according to data from CoinGecko. The two metrics were on the rise as they matched.

In fact, Hyperliquid clocked a perpetual volume of $8.54 billion, while its open interest rose to $8.28 billion. The perp volume of HYPE was only second to Lighter DEX, which had $10 billion. Other DEXs commanded volumes less than $5 billion.

In terms of open interest, Hyperliquid was ahead of all other competitors, including AsterDEX (ASTER), which had half of it. The increase in open interest showed that Hyperliquid was a better preferred DEX and token than its peers.

By comparison, Hyperliquid was challenging its competitors with similar performance at a lower price point. With that in mind, how will HYPE price perform in the next few sessions now that the markets are rebounding?

HYPE Price Analysis and Prediction

On the charts, the HYPE price was bouncing between the lower support level at $34 and $36, a zone that had previously pushed it to $50. The bids flushed out the built-up liquidity around the ascending trendline support of HYPE.

The altcoin broke the two fast-moving averages, flipping the structure to bullish action. As HYPE price traded around $42, the next target was set in the $50 region.

CT analyst Crypto Bully held this view, with the target set at the aforementioned level from a baseline of $35. The upper resistance zone was bombarded with sell orders, and a run on them could help the price surpass this resistance and revisit the peak at $60 after a short squeeze.

In conclusion, HYPE price was setting up for an outperformance in the coming days thanks to its open interest, perp volume traded, and the buyback program. Therefore, the $50 zone was set as the next target. Otherwise, HYPE price could continue to stay in this range if the market remains sluggish.