The HYPE token surpasses a major threshold before its IPO

Hyperliquid is making significant waves in the crypto market, experiencing a spectacular increase of 11.91%. This surge is fueled by the company's ambitious plans, which include a Nasdaq IPO and a $1 billion fundraising initiative. Institutional investors are closely observing this project as it aims to establish itself as a bridge between decentralized finance (DeFi) and traditional financial markets.

Hyperliquid Breaks a Crucial Resistance Level

The HYPE token has successfully surpassed a critical psychological threshold. After reclaiming the 61.8% Fibonacci level at $35.84, it has now broken through the 200-day moving average, a technical indicator that experienced traders have been monitoring for several weeks.

This notable performance occurs within a specific context: the platform recently implemented its HIP-3 upgrade on October 13, which now empowers any developer to establish perpetual markets without requiring prior authorization. This development has led to an explosion in trading volumes, indicating strong institutional demand. Large investors, often referred to as "whales," are actively accumulating leveraged long positions. This intense buying activity is not arbitrary; it appears to be in anticipation of a major event that could significantly reshape Hyperliquid's standing within the crypto ecosystem.

The next significant resistance level to watch is at $41.76. A decisive breakthrough above this point would serve as confirmation of a long-term bullish reversal. Currently, the market momentum remains favorable. Technical indicators are converging, suggesting a continued rally, particularly supported by sustained trading volumes and consistent buying pressure.

Hyperliquid's market capitalization has now reached $11.4 billion. This impressive valuation firmly positions the project among the leading players in the decentralized finance space. Analysts suggest that this valuation is justified, considering the ongoing developments and the project's strategic direction.

A Groundbreaking Bridge Between DeFi and Traditional Finance

The impetus behind this recent surge stems from an explosive S-1 filing submitted to the U.S. SEC. Hyperliquid Strategies Inc., formed through the merger of Nasdaq-listed Sonnet BioTherapeutics and Rorschach I LLC, aims to raise a substantial $1 billion.

The planned issuance of 160 million shares represents a large-scale operation that underscores the confidence of institutional investors in the project's future. The capital raised will be strategically allocated to fuel the expansion of the Hyperliquid ecosystem and to facilitate the systematic accumulation of HYPE tokens. A significant portion of these funds will be used for token buybacks in the secondary market, which will naturally create additional buying pressure. The remaining capital will support staking operations, thereby reducing the available circulating supply of HYPE tokens.

This "treasury management" approach bears similarities to strategies employed by companies like MicroStrategy for Bitcoin. The overarching goal is to transform Hyperliquid into an institutional-grade investment vehicle that is accessible through a stock exchange listing. This initiative will enable traditional fund managers to gain regulated exposure to the DeFi sector without the complexities of directly managing cryptocurrency portfolios.

The open interest in HYPE derivatives markets has now surpassed $2 billion, marking a record high and illustrating growing confidence in the platform's stability and potential. However, it is important to acknowledge that this rapid ascent is not without its risks. The market crash on October 11, 2025, resulted in over $10.3 billion in liquidations across the crypto market, an event that even surpassed the impact on major exchanges like Binance and Bybit. These past turbulences highlighted certain technical vulnerabilities that continue to be a source of concern for some market participants.