HYPE extends gains as Hyperliquid urges SEC action on pre-IPO futures framework
- HYPE rises for a second consecutive day, targeting a breakout above $60.00.
- Hyperliquid Policy Center and trade[XYZ] write to the SEC, calling for pre-IPO futures guidelines.
- HYPE retains a bullish outlook, supported by a positive MACD indicator and a rising RSI.
Hyperliquid (HYPE) retains a broad bullish outlook, trading above $59.00 on Tuesday. The decentralized exchange (DEX) native token marks the second consecutive day of gains as bulls return, eyeing a short-term breakout above $60.00.
Hyperliquid pushes for pre-IPO markets rules
Hyperliquid Policy Center and trade[XYZ], a leading deployer of perpetual markets built on the Hyperliquid blockchain, have jointly filed a comment letter in response to the United States (US) Securities and Exchange Commission’s (SEC) call for ideas to modernize the Initial Public Offering (IPO) process.
The letter laid out the pricing record of at least five trade[XYZ] pre-IPO perpetual (IPOP) markets that have completed their full life cycle on Hyperliquid. The letter also highlights questions the agency would need to resolve before opening IPOP markets for trading in the US.
An IPOP is a streamlined financial instrument that lets traders express directional views on a referenced issuer’s equity ahead of a scheduled listing, with transparent, continuously updated public pricing. It is a useful direction indicator for a stock that has been traded publicly before. However, holding an IPOP does not represent actual shares, allocation, voting rights or a claim of any form against the referenced issuer. It is solely meant for price exposure in the weeks before equities are publicly listed.
The five key items the Hyperliquid Policy Center urged the SEC to consider include the instrument's classification, issuer disclosure, listing-eligibility guardrails, market integrity and onshore IPOP for all investors.
Hyperliquid argues that Americans are missing out on pre-IPO exposure opportunities, including SpaceX, which was priced at $135 and listed at $150.
“They (American investors) had the signal in plain view and no way to trade it. Under a new framework that the Commission has the authority to write, American investors and issuers could join others around the world in benefitting from the innovation that pre-IPO markets afford,” the Hyperliquid Policy Center said in the press release statement.
Technical analysis: HYPE rises as bulls return
HYPE trades at $59.37, maintaining a constructive bullish bias as price holds above the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs). This stacked EMA configuration beneath spot reinforces a supportive backdrop, while the Moving Average Convergence Divergence (MACD) indicator has turned firmly positive and the Relative Strength Index (RSI) near 56 suggests steady, rather than overstretched, upside momentum.
Immediate support lies at the 50-day EMA at $58.33, followed by the 100-day EMA at $56.76, with the 200-day EMA at $51.68 emerging as a deeper bullish line in the sand if sellers intensify. On the topside, the prevailing downward resistance trendline remains the key barrier. A sustained break above this structural cap would likely open the door for a continued recovery, while failure to clear it could see HYPE/USDT moderating back toward the clustered EMA support zone.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
