Hyperliquid's HYPEUSD Soars: Whales Fuel 20% Surge, $50 Target in Sight

Hyperliquid Overtakes dYdX as Decentralized Perps Leader

Hyperliquid has overtaken dYdX to become the leading decentralized perpetual exchange, achieving over $1.5 trillion in all-time trading volume and capturing over 60% of the market share since its launch in 2023. Its growth accelerated after August 2024, driven by its high-performance Layer 1 blockchain, superior product offerings, and a tokenomics model focused on buybacks, which have repurchased approximately 17% of its HYPE tokens. Despite some controversies, Hyperliquid has surpassed dYdX in open interest and daily trading volumes, establishing itself as a key player attracting users from centralized exchanges and solidifying its position through innovative technology and strong market execution.

Whale Activity Drives Market Dynamics

Recent whale activity on Hyperliquid in May 2025 shows significant capital inflows and high-leverage trading, influencing market dynamics for Bitcoin and Ethereum. On May 20, one whale deposited 7 million USDC, buying ETH spot and opening a 3x leveraged long position, while another deployed nearly $3.9 million USDC to short Ethereum, and on May 21, James Wynn opened a massive 40x leveraged long position on Bitcoin worth approximately $830 million. Another whale executed a $88 million Bitcoin short with 40x leverage, with these activities underscore Hyperliquid's appeal for high-risk, high-reward strategies, contributing to its dominance in the perpetual futures market as whales actively shape price action through both spot and leveraged derivatives positions.

Market Overview and Price Movement

The HYPEUSD pair surged more than 20% in the past two days. It hit an intraday high of $30.93 and is currently trading around $30.73, holding above key moving averages on the 4-hour chart.

Key Resistance and Support Levels

The near-term resistance level is identified at $32, and a breach above this could push the price to $35, $42, or even $50. On the downside, immediate support is at $26.50, with potential targets lower at $25/$19 and $16 if violated.

Technical Indicators

Current indicators show the CCI (50) as bullish and the Directional Movement Index as neutral. It is recommended to consider buying on dips around $26.50, with a stop-loss set at $19 and a target price of $50.