• The Hyperliquid price is up 6.5% as a majority of major coins bleed.
• The Hyperliquid price rally comes amid token buybacks and BLP rollout.
• A risky pattern has, however, formed, hinting at a possible pullback.

Hyperliquid (HYPE) price has surged despite a broader market slump, drawing fresh attention to one of the strongest performers of the month.

While most major assets bleed through heavy selling pressure, HYPE has pushed higher on rising demand, aggressive buybacks, and growing activity across the Hyperliquid ecosystem.

But even as the altcoin’s market sentiment turns bullish, technical analysts warn that the rally may not be as secure as it appears.

Buybacks and BLP rollout drive momentum

The Hyperliquid (HYPE) price surge can be attributed first to the rapid progress of Hyperliquid’s Base Liquidity Pool testnet, commonly just referred to as BLP, which launched on Hypercore, the Layer 1 chain powering the exchange.

The BLP rollout signals a major shift in the protocol’s infrastructure as it introduces more efficient liquidity routing and additional yield mechanics.

The testnet has added new energy to the Hyperliquid ecosystem. It positions the platform not only as a fast on-chain exchange but also as a hub for tokenised equities such as Nvidia, Tesla, and SpaceX, which have attracted new users and boosted activity at a time when most platforms are seeing a pullback.

Another crucial force behind the recent HYPE price surge is the exchange’s aggressive buyback program.

Hyperliquid has already executed more than $1.3 billion worth of buybacks, removing over 28 million HYPE tokens from circulation.

The reduction in supply is creating steady upward pressure on the token, especially as long-term holders lock more HYPE into staking contracts.

Staking deposits have risen nearly 60% in a month, easing sell-side pressure and strengthening market confidence.

The tightening supply comes as Hyperliquid expands its role in the global derivatives market.

The exchange now accounts for more than 6% of perpetual futures market share, placing it alongside centralised giants such as Binance, OKX, and Bybit.

This expansion brings higher fees, more buybacks, and stronger fundamentals for HYPE.

Bearish chart signals challenge Hyperliquid’s price rally

Despite the strong fundamentals, technical signals are flashing warnings.

A head-and-shoulders pattern has been forming on the daily chart since June.

The neckline of the pattern sits near $35.5, a level that has repeatedly acted as a key support zone. If the price breaks below that area, HYPE could drop to the next support area just above $30.

The risk increases as the 50-day and 200-day moving averages approach a bearish crossover, often referred to as a death cross.

This formation typically signals a shift into a deeper downtrend, especially when it appears during a period of market uncertainty.

Nevertheless, HYPE has held above $40, an encouraging sign that demand remains strong, and a clean move above $46 could invalidate the bearish setup.