HYPE Token’s Bullish Setup Strengthens as Funding Rate Soars

The Hyperliquid’s HYPE token is authenticating prospects of a bullish breakout as technical analysis and derivatives data align to support an upward move. The cryptocurrency, currently trading around the $24 mark, is consolidating within a symmetrical triangle pattern, with key resistance at $25.85 and a breakout target of $35.37. At the same time, the OI-weighted funding rate has surged to 0.0506%, indicating a strong influx of long positions, a sign of growing bullish sentiment.

HYPE’s Technical Setup: A Breakout Looms

The symmetrical triangle pattern on HYPE’s daily chart suggests a tightening price range, with a probable breakout approaching. The support zone at $22.91, aligning with the 50% Fibonacci level, remains a crucial level for bulls to defend, while resistance near $25.85 (0.618 Fibonacci level) is the next key hurdle.

A successful breach above this level could pave the way for an extended rally toward $30.04 (0.786 Fib) and the full measured move target at $35.37. Moving averages further reinforce the Hype token’s bullish narrative, with its price action currently interacting with key MA levels 20 and 50.

A daily close above these moving averages would strengthen the upside momentum. At the same time, a failure to hold the support zone may open the door for a decline toward $19.96 (0.382 Fib), invalidating the cryptocurrency’s bullish setup or even $10.44 in a highly bearish scenario.

HYPE’s Funding Rate Surge Signals Bullish Leverage

According to CoinGlass on-chain data, the sharp increase in HYPE’s OI-weighted funding rate suggests that traders are aggressively opening long positions in the perpetual futures market. Historically, a rising funding rate coincides with price upswings, as buying pressure outweighs selling activity.

As of press time, the OI-weighted funding rate spiked to 0.0506% shortly before HYPE’s price jumped to the $24 threshold. This surge highlights increased speculative interest, potentially driving the asset higher in the short term. However, excessive funding rates can also lead to a long squeeze, where overleveraged positions get liquidated, causing sharp price corrections.

Analysts Highlight HYPE’s Strategic Growth

Adding to the bullish outlook, an X (formerly Twitter) post from ThinkingUSD emphasized Hyperliquid’s competitive edge, stating there are “8 billion reasons to build on Hyperliquid over any other competing L1.” This statement suggests that significant liquidity and developer incentives fuel adoption, reinforcing HYPE’s long-term prospect as a key asset in the ecosystem.

8 Billion reasons to build on Hyperliquid over any other competing L1

Hyperliquid

— Flood (@ThinkingUSD) February 11, 2025

Meanwhile, market analyst NatalDormer emphasized the cryptocurrency’s potential, attributing its growth to the team’s strategic decision-making and market insight. He asserts that the token’s team possesses a keen understanding of the market and “know exactly when to make the right moves.” This suggests that investors and analysts recognize the project’s ability to navigate market dynamics effectively, driving further accumulation of HYPE tokens.

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