Hyperliquid price stabilized over the weekend after reclaiming a key bullish chart structure, while growing institutional adoption narratives continued supporting investor sentiment around the decentralized derivatives protocol.
Summary
- Hyperliquid price rebounded above $45 after reentering a bullish ascending wedge pattern following a recent pullback toward the $38 support zone.
- CME Group and ICE reportedly urged U.S. regulators to scrutinize Hyperliquid over potential manipulation and sanctions risks, contributing to recent volatility in HYPE price.
- Institutional interest in Hyperliquid continued rising as Bitwise and 21Shares expanded spot and leveraged HYPE ETF offerings in the U.S.
According to data from crypto.news, Hyperliquid (HYPE) price was trading around $45 at press time on May 18 after briefly rallying above the $46 level earlier in the session. The token has now recovered more than 100% from its January lows near $22 as demand surrounding decentralized perpetual trading infrastructure continued strengthening.
Despite the recent recovery, Hyperliquid faced heightened volatility over the past two weeks following reports that CME Group and Intercontinental Exchange urged U.S. regulators to scrutinize the protocol over potential market manipulation and sanctions compliance risks.
The concerns reportedly centered around the growing influence of decentralized offshore trading platforms within the perpetual futures market and whether existing compliance frameworks remain sufficient as trading volumes continue expanding rapidly.
The regulatory scrutiny narrative contributed to a sharp correction in Hyperliquid price earlier this month as some traders reduced exposure amid fears that increased oversight could temporarily weigh on sentiment surrounding decentralized derivatives platforms.
However, bulls have since regained control as institutional demand for Hyperliquid-linked investment products continued to accelerate.
One of the biggest catalysts supporting sentiment remains the recent launch of multiple Hyperliquid-related exchange-traded products in the United States.
Earlier this month, Bitwise launched its spot Hyperliquid ETF product, while 21Shares introduced both a spot-focused HYPE ETF and a leveraged 2x Long HYPE ETF. The launches reinforced expectations that institutional appetite for decentralized finance infrastructure continues expanding beyond Bitcoin and Ethereum.
Hyperliquid has also continued benefiting from broader ecosystem integration narratives involving Coinbase and Circle, particularly as institutional stablecoin infrastructure and trading connectivity tied to the protocol keep improving.
At the same time, derivatives activity surrounding Hyperliquid has remained elevated as traders continue positioning for a potential continuation of the broader uptrend.
Hyperliquid price analysis
On the daily chart, Hyperliquid price appears to have reentered a bullish ascending wedge pattern after successfully rebounding from the lower support trendline near the $38–$40 region.
The recovery back toward the upper half of the structure suggests buyers continue defending the broader bullish trend despite recent regulatory-driven volatility.
Unlike the previously invalidated bearish double top structure near the $45–$46 resistance zone, the current setup increasingly resembles a bullish continuation pattern following Hyperliquid’s explosive rally earlier this year.
The MACD indicator has also started turning higher again after a brief cooldown phase, with the histogram gradually flipping back into positive territory. This often signals strengthening bullish momentum as buyers regain short-term control.
Meanwhile, the RSI currently remains near the 58 level, indicating momentum has improved without yet entering overbought territory. That leaves room for another potential leg higher if bullish momentum continues building.
As long as HYPE continues holding above the ascending wedge support near the $40 region, bulls may attempt another breakout above the key $46 resistance zone.
A successful breakout above that level could open the door for a rally toward the psychological $50 mark, with the upper wedge resistance near the $52 region acting as the next major upside target.
On the downside, failure to hold above the wedge support structure could weaken bullish momentum and potentially expose Hyperliquid to another correction toward the $38 support zone. A deeper breakdown below that level could invalidate the broader bullish continuation setup and shift momentum back in favor of sellers.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
