Hyperliquid's Big Move: What's Behind the 10% Jump?

Hyperliquid's token, HYPE, saw a 10% increase, reaching $39. 70. This surge came after the company filed a Form S-1 with the SEC. They aim to raise up to $1 billion through a public offering of 160 million shares. Part of this money will be used to buy HYPE tokens, linking the company's equity raise to its crypto strategy. The company, based in New York, is a result of a merger between Sonnet BioTherapeutics and Rorschach I LLC. David Schamis is the CEO. They plan to use the funds for general corporate purposes and token purchases. This offering could be one of the largest in the digital finance space this year. Looking at the charts, HYPE has broken out of a wedge pattern. This pattern had kept the price steady through mid-October. The token is now above the 20- and 50-day moving averages. The next big test is near the 100-EMA at $39. 54 and the 200-EMA around $42. 30. If HYPE closes above $42, it could signal a trend reversal. This would open up targets at $48–$50, with a possible extended move to $58–$60. However, there's a catch. Despite the price gains, spot flow data shows continued outflows. On October 23, exchanges recorded about $3. 96 million in net outflows. This pattern has been going on for weeks. It suggests that while prices are recovering, spot demand is still limited. Sellers are still sending tokens back to exchanges. This could weigh on the breakout's sustainability, especially when prices test major resistance zones. The outlook for HYPE depends on whether it can close above the 200-EMA near $42. If it does, it could attract more buyers. This would put $48, $52, and $58 in play. But if it fails to absorb selling pressure around that level, the token could drop back to $37 support. It might even fall to the $34. 50 base if the rally fades.