Cathie Wood compares Hyperliquid to early Solana: Can HYPE price rebound?

ARK Invest CEO Cathie Wood recently commented on the Master Investor podcast, referring to the decentralized exchange (DEX) protocol Hyperliquid as a "new entrant" and stating that it "reminds me of early Solana." While she reiterated that Bitcoin remains the core of ARK's encryption investments, this comparison highlights the rising dominance of high-speed DEXs in the derivation market. Whether the remarks of this heavyweight figure can boost market sentiment for HYPE tokens and help them recover from the recent technical pullback caused by the "rising wedge" pattern has become the focus of market attention.

Cathie Wood's Comments and the Fundamentals of Hyperliquid

Wood's comparison of Solana is based on Hyperliquid's rapid expansion in trading metrics.

• High-profile comparison: Wood considers Hyperliquid "exciting" and likens it to the early development trajectory of Solana, suggesting it has the potential to become a high-growth ecosystem leader.
• Core Idea: Although Wood acknowledges the growth momentum of DEX, she clearly states that Bitcoin still dominates the "pure cryptocurrency space."
• Key Indicators: Token price: HYPE Token is currently trading at approximately 44.36 USD.

Market size: Market value is close to 12 billion dollars.

Trading Activity: DeFiLlama data shows that in the past day, Hyperliquid's perpetual contract trading volume was $4.61 billion, with an Open Interest of $12.7 billion and daily fee revenue of $1.43 million.

• Platform Features: Hyperliquid is a Layer-1 blockchain with single-block finality and a custom HyperBFT consensus mechanism, designed more like a high-speed trading platform rather than a typical Layer-2 network.
• HYPE Buyback Mechanism: The platform uses 99% of the spot order book fees for its Assistance Fund and for the buyback of HYPE Token, which is a supply-side mechanism to support the token price.

HYPE Price Prediction: Technical Challenges After Breaking the "Rising Wedge"

Technical analysts point out that the HYPE Token is currently facing pullback pressure, with the key lying in the support role of the summer consolidation zone.

• Momentum Shift: Analyst Don's chart shows that HYPE has broken down from the "rising wedge" pattern, indicating a shift in market momentum, with the price breaking below the support level that has sustained its rise for several months.
• Top Rejection: The daily chart shows that HYPE sharply declined after encountering rejection near the upper boundary of the wedge around 58 dollars.
• Bearish Signal: The price has broken below the red uptrend line that has supported the rise since April. In technical analysis, a break below an ascending wedge is often interpreted as a bearish signal, indicating stronger selling pressure.

· Key demand zone and rebound potential

• Key support: Analysts' outlook still leaves room for recovery. The chart emphasizes the "demand zone" between 30 and 34 dollars. This range served as a consolidation bottom during the summer.
• Recovery Path: If HYPE can successfully retest and hold the range of 30-34 dollars as support, it will attract new buyers and reset positions.
• Price Target: After rebounding from this demand zone, the price is expected to return to the range of 50 to 60 dollars. This suggests that it may continue to weaken in the short term, but if buyers can step in at the key support level, a broader bullish structure may remain intact.

Conclusion

Cathie Wood has incorporated Hyperliquid into the Solana-level growth narrative, undoubtedly bringing tremendous market sentiment boost and institutional attention to the HYPE Token. This high-profile recognition may offset the bearish signals caused by the "rising wedge" breakout on recent technical charts. However, as technical analysis indicates, whether the HYPE price can regain upward momentum in the short term will depend on whether the key demand zone ($30-$34) can hold steady and attract a new wave of buying. If the macro narrative can overcome short-term technical resistance, Hyperliquid is expected to further solidify its leading position in the DEX competition.

Do you think the comments made by well-known investors like Cathie Wood have a short-term emotional impact or a long-term narrative reshaping effect on the market for mid-cap encryption tokens like HYPE?