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Hyperliquid has broken out of a long-running bearish channel on the daily chart as institutional and smart money investors increase their positions. The token HYPE has rallied across consecutive sessions, with fresh accumulation and protocol-level buybacks and burns helping to lift momentum.
Smart money accumulation
Who is buying HYPE?
On-chain analytics show a clear trend of smart money accumulation over the past month. Nansen reports that major buyers like Maven 11 added 161.3K HYPE to their holdings, taking their position to roughly $4.5 million in value. Other notable firms, including a16z crypto and Borderless Capital, also increased exposure by roughly 42.3K tokens combined. Such concentrated buying from reputable funds often signals confidence among experienced crypto investors and can trigger follow-on retail interest.
Buyback and burn mechanics
Protocol-level scarcity
Another structural catalyst for HYPE price appreciation is Hyperliquid's aggressive buyback program. The protocol uses revenue to repurchase tokens on the open market and burn them, reducing circulating supply. In late December the project recorded nearly $912 million worth of HYPE removed from circulation, an event that increases scarcity and can reinforce demand if market conditions remain favorable.
Hyperliquid price analysis
Hyperliquid price has broken out of a multi-month descending parallel channel pattern on the daily chart. A confirmed breakout of this type typically indicates buyers have taken control and that higher prices may follow as momentum accelerates.
Hyperliquid price has broken out of a descending parallel channel pattern on the daily chart — Jan. 7
Technical indicators
The technical picture supports a bullish near-term outlook. MACD shows a bullish crossover accompanied by expanding green histogram bars, suggesting increasing upward momentum. Chaikin Money Flow reads about 0.22, indicating positive capital inflows and demand pressure. Together these readings align with the on-chain accumulation narrative and protocol-driven supply reductions.
Price targets and outlook
Based on the channel breakout and measured move calculations, HYPE could retest its December 4 high near $35.8 — roughly 30% above current levels at the time of writing. Traders should monitor volume, further smart money activity, and subsequent buyback announcements for confirmation. As always, risks include overall crypto market volatility and potential profit-taking after swift rallies.
This update provides a concise view of why institutional accumulation and tokenomics events are driving the recent Hyperliquid breakout and what indicators traders are watching next.
Source: crypto
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