Strong Protocol Activity Drives HYPE Rally

Key Points from the September Rally

The HYPE token delivered one of the strongest rallies among large-cap crypto assets in September, climbing from roughly $50-$60 at the beginning of the month to a record $97.90 on Sept. 22. This rally has been closely linked to activity on Hyperliquid, with total open interest reaching approximately $14.3 billion in early September.

Hyperliquid's Growing Financial Infrastructure

The protocol has also expanded its financial infrastructure, introducing manual borrowing, allowing users to use HYPE or BTC as collateral for stablecoin loans. This feature reportedly generated about $269 million in borrowing during its first day, alongside more than $400 million in supplied liquidity.

Institutional Access and ETFs

Three U.S. spot HYPE ETFs held approximately $502 million in assets as of Sept. 25, although inflows had slowed from their early-September peak. Binance also listed HYPE with a Seed Tag on Sept. 24, initially contributing to a roughly 4.5% decline as some large holders moved tokens to exchanges.

Technical Picture Weakened

The technical picture has weakened from the September peak, with HYPE falling to around $86 after reaching nearly $98. Trading volume has generally declined through September, while the latest sell-off occurred with moderate activity. This suggests that the market may be experiencing profit-taking and consolidation rather than a full reversal.

Momentum Indicators Overbought

The rally has pushed momentum indicators into overbought territory, with RSI remaining around 70-75 for extended periods before the latest decline. A sustained break above the $98-$100 area could lead to further gains, but a failure to reclaim this zone could result in consolidation.