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Hyperliquid, the largest player in the decentralized perpetual futures trading industry, is performing well as its volume surges.
Hyperliquid (HYPE) token rose by over 10% on January 12, even as other popular cryptocurrency prices declined. The token reached $23.10, its highest level since Sunday.
The surge is likely due to Hyperliquid’s dominant market share in the futures trading industry. According to DefiLlama, the network has processed over $747 billion in futures trades since its inception.
Its 24-hour volume stood at $12 billion, bringing its seven-day total to $73 billion. This makes it significantly larger than Jupiter (JUP), the second-biggest player in the industry, which handled $2.61 billion in the last 24 hours and $11.65 billion over the past week.
On Monday, Hyperliquid’s daily volume reached a record high of $22 billion—an impressive leap from the $640 million it handled on the same day last year.
All-time highs two days in a row:
— Hyperliquid (@HyperliquidX) January 21, 2025
Hyperliquid reached >$22B in 24h volume pic.twitter.com/KSV0dvKmZm
This increase was largely driven by the surging volume of newly launched meme coins like Official Trump (TRUMP) and Melania (MELANIA). These two tokens achieved multi-billion dollar market caps ahead of Donald Trump’s inauguration.
Chart points to more HYPE price surge
Since December 21, when HYPE peaked at $35.10, it has formed a falling wedge chart pattern. A falling wedge is characterized by two trendlines connecting an asset’s lower lows and lower highs. A bullish breakout typically occurs when the two lines converge.
This breakout happened on January 14, as the price rose to test the resistance level at $24.43.
The token then executed a break-and-retest pattern, pulling back to the upper side of the wedge before resuming its upward momentum. A break-and-retest is a key continuation pattern, signaling potential further gains. Additionally, HYPE has formed a small inverse head and shoulders pattern, which is often a bullish reversal signal.
As a result, HYPE is likely to see a strong bull run if it moves above the $24.43 resistance level. Should this happen, the next target to watch would be $35, its December high, representing a 51% increase from the current price.