Nasdaq-listed biotech firm Sonnet BioTherapeutics has announced a significant strategic shift, forming a business combination with Rorschach to establish Hyperliquid Strategies Inc. (HSI). This new entity is set to launch a substantial Hyperliquid (HYPE) digital asset treasury, aiming to hold approximately 12.6 million HYPE tokens and $305 million in cash, with the latter earmarked for future HYPE acquisitions. This move has sparked considerable interest among crypto traders and analysts, raising questions about a potential rally for the HYPE token.
HYPE's price saw a pullback from the psychological $50 level on Monday, but the overall sentiment remains optimistic. The token's chart displays several bullish indicators:
A key level to watch is $45.80. If HYPE's price successfully rebounds off this level, it would suggest that bulls have effectively flipped it into a support zone. This could pave the way for a decisive breakout above the $50 resistance, potentially propelling the HYPE/USD pair towards $60.
For the bullish momentum to continue, buyers need to drive the price above $50 and sustain it there. A successful breach of this psychological barrier would likely signal buyers taking firm control, with $60 as the next significant target.
Conversely, bears would need to push the price below the 20-day EMA ($42.93) to weaken the current bullish trend. A more significant bearish signal, indicating a potential short-term top, would be if the price skids below the 50-day SMA ($38.86). Should this occur, it could deepen the correction for HYPE, potentially bringing it down to the $41 level.The formation of a Nasdaq-listed entity focused on accumulating HYPE tokens introduces a new dynamic to the market. While technical indicators currently lean bullish, traders should closely monitor these key price levels to gauge the direction of HYPE's next significant move.
Do you think this institutional backing will be the catalyst for HYPE to reach new all-time highs?
July 2025, Cryptoniteuae