- HYPE reaches a record high as Hyperliquid Strategies expands holdings to 29.3 million tokens.
- Buybacks could strengthen HYPE demand, supported by growing network activity and treasury accumulation.
- Overbought momentum and a $1.2 billion token unlock create significant downside risks for HYPE.
Hyperliquid’s HYPE has reached another record after a powerful weekly rally. The move has pushed HYPE into a fresh price discovery phase. At the same time, treasury accumulation has become a major part of the story. Hyperliquid Strategies now holds 29.3 million HYPE tokens. New buyback plans could add another source of demand. Yet traders face important risks, including overbought momentum and a major token unlock approaching. Those factors could shape HYPE’s next move.
Hyperliquid Treasury Expands as HYPE Breaks Higher
HYPE trades near $85.33 after reaching $84.80 on Thursday. That marked the second record high within seven days. The token also posted a 40% weekly gain during the latest rally. Buyers pushed through the previous $77 resistance level. HYPE has since treated $77 as a support zone. Treasury growth provides another major reason behind the recent attention. Hyperliquid Strategies now holds 29.3 million HYPE tokens.
The company raised $646.6 million through a committed equity facility. Management deployed roughly $773.4 million toward HYPE purchases and other activities. The company bought around 16.5 million HYPE at $46.77 per token. Treasury holdings previously stood near 12.5 million tokens after the merger. The company also reported $305.5 million in annual net income. Unrealized HYPE gains contributed $709.9 million to that figure.
Investors reacted positively to the results. PURR shares climbed 19.64% to $13.83 following the earnings announcement. The strong response shows growing market interest in the treasury strategy. Hyperliquid also introduced another potential demand driver through AQAv2. Around 90% of cost-adjusted yield now supports HYPE buybacks.
HYPE Faces Overbought Signals and Unlock Risk
Network activity also supports the bullish narrative around Hyperliquid. The platform controls about 63% of decentralized perpetual open interest. Hyperliquid also represents 9.4% of global derivatives activity. Perpetual volume reached $19.4 billion on August 21. HIP-3 open interest surpassed $4 billion during August. Real-world asset markets also exceeded half of weekly volume during July.
These figures highlight growing activity across multiple parts of the ecosystem. However, traders should watch technical conditions closely. The upper Bollinger Band currently sits near $89.23. A 1.272 Fibonacci extension offers another resistance level around $92.37. Meanwhile, the Money Flow Index has reached 91.42. Readings above 80 generally indicate heavily overbought conditions.
Analyst Crypto Patel also warned about potential downside risks. He identified $79 as an important support level. A breakdown could expose HYPE to $69, $62, and $58. Another concern involves a $1.2 billion token unlock scheduled for August 29. Another unlock follows one month later. Large releases can increase available supply and pressure prices.
