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Hyperliquid Strategies Inc. plan for $583M treasury boosts HYPE price
Key point:
Nasdaq-listed biotech company Sonnet BioTherapeutics said on Monday that it had formed a business combination with a newly created entity, Rorschach, to launch a Hyperliquid (HYPE) digital asset treasury
When the deal closes, Hyperliquid Strategies Inc. aims to hold 12.6 million HYPE tokens and $305 million in cash. The cash will be used to acquire more HYPE tokens in the future.
Could HYPE rally after the formation of the HYPE digital asset treasury? Let’s analyze the charts to find out.
HYPE price prediction
HYPE turned down from the psychological level of $50 on Monday, but a positive sign is that the bulls have not ceded much ground to the bears.
Sellers will have to yank the price below the 20-day exponential moving average ($42.93) to weaken the bullish momentum. The pair could signal a short-term top if the price skids below the 50-day SMA ($38.86).
Related: Ethereum open interest hits all-time high as trader predicts $30K price top
Buyers will have to drive the price above $50 to seize control. The pair may then climb to $60. The short-term trend will tilt in favor of the bears if they sink the pair below the 50-SMA. That could deepen the correction to $41.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.