Multicoin Capital stakes nearly 2 mln Hyperliquid: Will HYPE rise above $43?

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Multicoin Capital stakes nearly 2 mln Hyperliquid: Will HYPE rise above $43？

Often, increased scarcity boosts an assets upward momentum, a prelude to a higher price.

Source: HypurrScan

So far, the team has burned 44.94 million HYPE worth approximately $2 billion, further shrinking market supply.

Combined, staking and token buybacks have significantly absorbed the market selling pressure, thus helping HYPEs market stability.

Is the demand adequate to hit $50？

Although Hyperliquid has been on a strong upward momentum, news from Multicoin Capital seems to have boosted the uptrend. The altcoin breached the $42 resistance, touched a local high of $43.3, and then slightly retraced.

As of this writing, Hyperliquid [HYPE] traded at $43.18 after a slight 3.18% rise on the daily charts, reflecting higher upside volatility.

The altcoin uptrend has largely strengthened, especially driven by rising bull dominance in the market. Looking at the Bulls v Bears indicator, buyers displaced sellers two days ago.

The indicator formed a bullish crossover, signaling a shift in market dynamics. As a result, downside volatility declined to 2.5, while upside volatility rose to 2.1.

Source: Tradingview

Taken together, these two indicators suggest that bulls are currently in control of the market, but it still faces underlying pressure. While the market is not yet fully bullish, the upside momentum remains strong.

If the reduced scarcity holds, with buyers still in control, HYPE will flip $45 and target $50. However, with downside volatility at 2.5, sell-side activity remains active.

If this downside risk drags the market down once more, HYPE is likely to lose its $40 support.