HYPE's Anticipation-Led Rally Faces Consolidation After 76% Surge

The crypto market has been watching Hyperliquid with keen interest as anticipation builds around the HIP-4 update scheduled for implementation. The rallying momentum reflects broader market sentiment, with HYPE recording a notable 76% gain over the preceding two weeks. However, recent price action tells a different story—current trading data shows the token down 3.69% over the past seven days, settling at $31.32, suggesting that the initial wave of optimism may be undergoing a correction phase.

What’s Behind the Anticipation: HIP-4’s Fully Collateralized Contracts

The surge in HYPE can be largely attributed to anticipation surrounding the HIP-4 update, which introduces fully collateralized outcome contracts—a significant technical enhancement to the Hyperliquid protocol. This development has captured the attention of derivatives traders and protocol participants, fueling expectations for expanded functionality and improved risk management within the ecosystem. Market observers via NS3.AI have noted that despite the substantial rally, social media engagement remains surprisingly subdued, indicating that the move has not attracted excessive retail participation or overcrowded positioning.

Market Sentiment: Cautious Optimism in Derivatives Data

The derivatives landscape reveals intriguing dynamics beneath the price surface. On-chain data shows strong accumulation of long positions, with minimal short liquidations during the recent upswing—a healthy sign suggesting conviction among larger traders rather than panic-driven rallies. This setup indicates that anticipation for the HIP-4 upgrade has attracted genuine interest from sophisticated market participants who expect the update to deliver tangible value.

Technical Framework: Where HYPE Could Find Balance

From a technical perspective, the token maintains key support around $30, with resistance clusters forming at $42 and $47. These levels will be crucial in determining whether the anticipation-driven rally can sustain above current prices or if consolidation becomes necessary. The current price of $31.32 positions HYPE just above its critical support, leaving room for either a bounce or potential test of lower levels if market sentiment shifts.

The broader narrative around Hyperliquid remains constructive, supported by genuine protocol improvements and measured trader engagement, though the market appears to be taking a breather before the next leg of the anticipated move.