Hyperliquid (HYPE) rebounded sharply today, with its token rising approximately 13% to $41.67 following a significant protocol upgrade and intensified discussions surrounding exchange transparency. The token’s surge cut short a weekly decline and boosted market capitalization metrics, prompting traders to analyze the technical and fundamental implications of recent developments.
Activation of Hyperliquid Improvement Proposal 3 (HIP-3)
The key driver behind this price increase was the activation of the Hyperliquid Improvement Proposal 3 (HIP-3) on October 13. This upgrade allows for the permissionless creation of perpetual futures markets.
Under the new guidelines, builders who stake 500,000 HYPE tokens can deploy perpetual DEX on HyperCore, directly linking token utility to platform growth.
This staking mechanism generates immediate demand for HYPE tokens while lowering barriers for derivatives product builders, potentially expanding the range of tradable products and liquidity on the protocol.
This upgrade also aligns with Hyperliquid’s broader positioning as a fully on-chain DEX integrated with HyperEVM.
By design, all transactions, orders, and liquidations are transparently recorded on-chain. For traders and market makers, the promise of open verification reduces counterparty risk associated with opaque internal reports.
Hyperliquid Founder Critiques Opaque CEX Liquidations
Hyperliquid’s founder, Jeff Yan, reinforced the value proposition of HYPE by publicly criticizing centralized exchanges (CEX) for underreporting liquidation events.
Yan highlighted documentation showing that Binance’s CEX liquidation flows only report one event every 1,000 milliseconds, potentially hiding multiple simultaneous liquidations.
Hyperliquid’s fully on-chain liquidations cannot be compared with underreported CEX liquidations. Hyperliquid is a blockchain where every order, trade, and liquidation happens on chain. Anyone can permissionlessly verify the chain’s execution, including all liquidations and their… pic.twitter.com/K5sv74LJgO
— jeff.hl (@chameleon_jeff) October 13, 2025
In the aftermath of a $19 billion liquidation cascade on October 10-11, Yan’s comments resonated with many market participants.
The contrast between Hyperliquid’s on-chain performance and the alleged underreporting by CEX became a negotiable narrative. Institutional and retail traders favoring verifiable execution may redirect activity and capital toward venues where every liquidation is public and traceable.
If this trust shift endures, it could support sustained volume on Hyperliquid.
HYPE Token Price Analysis
From a technical standpoint, HYPE rebounded from a longer-term support level near the 200-day simple moving average, around $36.17, attracting bullish buying.
The momentum indicators present mixed signals: the RSI hovers near oversold territory at about 38.8, suggesting room for upward movement, while MACD readings remain bearish.
While Hyperliquid’s price has crossed a short-term obstacle today, significant general resistance remains, and bearish pressures have not yet capitulated.
According to some analysts like CoinLore, the token needs to stay above $39.80 to aim for initial resistance at $43.82, with higher resistances at $49.45 and $57.30. Conversely, a failure to maintain above $39.87 could lead to a decline towards $35.03, where longer-term support might be tested.
Hyperliquid Price Forecast and Key Levels to Watch
In the short term, bullish momentum seems plausible if adoption follows the upgrade and the transparency narrative continues to redirect volume toward Hyperliquid.
Sustaining above $40 is crucial; this would validate the recent rebound and enhance chances of testing $43.82 as the next target.
However, if the inability to hold this area continues, HYPE may retest lower support around $35.
Traders should monitor for concrete adoption signals over the next 48 hours: new perpetual deployments, on-chain staking activity, and steady transaction volumes on newly launched markets.
Additionally, they should observe how the broader market processes macroeconomic news, as systemic events can quickly overshadow idiosyncratic catalysts.
If builders and traders embrace HIP-3, the utility and demand for HYPE could significantly surpass mere speculative dynamics.
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