Why is Hyperliquid price up despite crypto market bloodbath?

Hyperliquid price is rallying against the market tide as institutional adoption and improving chart structure attract fresh buyers.

Hyperliquid was trading around $34.96 at press time, up 6% in the past 24 hours, even as the crypto market sold off sharply. Bitcoin briefly slipped below $72,000, and most large-cap tokens traded lower.

Hyperliquid (HYPE), however, has moved in the opposite direction. The token is up 1.5% over the past seven days and has gained 29% over the last month, standing out during a period of heavy market pressure.

Derivatives data points to cooling leverage rather than panic buying. Open interest fell 2.42% to $1.55 billion, while trading volume decreased 31% to $4.06 billion, according to CoinGlass data.

This often indicates that traders are lowering their exposure rather than chasing gains, which can keep the price stable during volatile sessions. 

Why is Hyperliquid price rising?

Several developments have raised short-term demand. On Feb. 4, Ripple announced that Ripple Prime, its institutional brokerage platform, had added support for Hyperliquid.

The integration allows institutions to access on-chain perpetuals and derivatives on Hyperliquid while managing risk alongside traditional assets such as FX and fixed income.

The news was met with a positive market response, lifting HYPE even as selling pressure persisted across the crypto market. While the integration does not directly benefit XRP or rely on the XRP Ledger, it will boost HYPE which is at the centre of perps trading activity.

Another development followed the same day. Hyperion DeFi Inc. (NASDAQ: HYPD), a publicly traded digital asset treasury focused on Hyperliquid, said it plans to use its HYPE holdings as options collateral.

The company said it isn’t engaging in directional bets. Instead, the strategy focuses on earning income from options premiums and fees, together with staking rewards. Hyperion is working with Rysk protocol to launch an on-chain options vault directly on Hyperliquid.

Over time, the vault could be opened to other institutional HYPE holders. By putting more tokens into structured products and reducing the liquid supply, this strategy might support the token’s price.

Another protocol update that has garnered attention is HIP-4. The plan introduces fully collateralized “outcomes” trading for products that resemble options and prediction markets. The feature is designed to appeal to traders who prefer defined risk during volatile periods.

HIP-4 comes after previous improvements that enabled permissionless markets for crypto, equities, and commodities. With over $1 billion in open interest, nearly $5 billion in daily volume, and a massive rise in weekly transactions since those updates, Hyperliquid has seen strong network growth.

An upcoming token unlock on Feb. 6, releasing about 9.92 million HYPE worth roughly $300 million, has so far failed to unsettle buyers. Previous unlocks were absorbed without sharp pullbacks, which has helped calm concerns.

Hyperliquid price technical analysis

After months of steady decline, HYPE has shifted structure. A distinct shift in trend behavior is visible as the price recovered the mid-Bollinger Band and remained above it. The recent pullback formed the first higher low since November, flipping the structure from bearish to neutral-bullish.

Price has pushed above the upper Bollinger Band with strong closes rather than thin wicks. Volatility bands have turned upward, and the 20-day moving average now acts as support instead of resistance. The relative strength index has moved into the 60–70 range, holding above its signal line.

HYPE also cleared the $32–$33 resistance zone and has stayed above it, suggesting acceptance at higher levels. Overhead supply looks limited until the $40 area.

Holding above $32 keeps momentum intact and allows a move toward $38–$42 if market conditions stabilize. A drop back below $32 could pull the price toward $27–$28, where trend support would be tested.