HYPE Continues Its Uptrend Following Ethena’s USDe Integration on Hyperliquid

Key Takeaways

• HYPE has consistently made higher and lower highs since April 7, confirming a bullish reversal.
• Integration of Ethena’s USDe and rising rewards for HyperCore users contributed to the bullish outlook.
• On-chain data show Hyperliquid’s TVL more than doubling in a month, pointing to strong ecosystem growth.
• With indicators flashing buy signals, HYPE’s price could break through $22.87 and rally toward $28.41.

After a sluggish first quarter marked by consistent downturns, Hyperliquid’s native token, HYPE, has roared back to life. HYPE’s price increased by 100% in April after dropping to $10.21 in the first week.

May has begun, and it does not seem like the cryptocurrency is ready to give up the gains it acquired over the last month. Specifically, the last seven days have seen HYPE net a 15% surge amid new developments happening around the Hyperliquid ecosystem.

With new developments coming up, what does the short-term hold for the altcoin? Let’s find out.

Ethena’s USDe Integration Extends HYPE Surge

On the daily chart, HYPE’s price has been hitting higher lows and highs since April 7, about a month ago. This price action proves the cryptocurrency’s strength since the correction in Q1.

Amid this surge, bulls have been able to defend the support at $10.26 while helping to break through the resistance at $16.76. In line with this movement, the Moving Average Convergence Divergence (MACD) has also held on to its positive reading.

The positive MACD reading confirms growing bullish momentum. On the same timeframe, the 12-day Exponential Moving Average (EMA), in blue, has crossed above the 26-day EMA (orange).

This further validates the uptrend. If this momentum holds, HYPE could break above $21.15 in the short term.

Interestingly, this extended rally gained traction after Ethena, an Ethereum-based synthetic dollar protocol, announced the launch of its USDe stablecoin on Hyperliquid, boosting market confidence in the ecosystem.

On Monday, May 5, Hyperliquid confirmed that users can bridge USDe to the HyperEVM, allowing users to earn rewards.

“USDe is now live on both Hyperliquidexchange and HyperEVM. HyperCore users will earn daily rewards auto airdropped on top of their USDe spot exchange balances,” The Ethena team disclosed .

TVL Follows the Playbook

Following the announcement, it was not just HYPE’s price that jumped. According to DeFiLlama, Hyperliquid’s Total Value Locked (TVL) also began climbing again, reversing an earlier decline.

On April 8, the TVL was down to $311.55 million, indicating lower user activity and capital outflows. This decline also had bearish implications for the HYPE coin.

But as of this writing, Hyperliquid’s TVL has soared to $851.94 million. This rise indicates a surge in assets locked in protocols under the chain.

It also represents increased activity and greater utility. If sustained, the hike in the TVL could imply a higher valuation for HYPE’s price.

HYPE Price Analysis: Momentum to Accelerate

Regarding the short-term price action, CCN observed that the Chaikin Money Flow (CMF) has remained above the zero signal line. Typically, a drop below the zero line indicates selling pressure.

Therefore, the rise in the CMF reading indicates intense buying pressure around HYPE. In addition, the green line of the Supertrend indicator is below HYPE’s price, reinforcing the bullish trend around the cryptocurrency.

This position contradicts the period when the indicator’s red line was above the price during the downtrend. Should these indicators maintain their current positions, HYPE’s price could break the resistance at $22.87.

If that happens, the next target for the altcoin might be a run toward $28.41 at the 0.786 Fibonacci level. HYPE could hit a new high at $35.47 in a highly bullish case.

However, if selling pressure rises, this prediction might not pass. The CMF rating might drop in that scenario, and HYPE’s price could fall toward $15.10.