The cryptocurrency market is abuzz with speculation following a major whale investment in HyperLiquid (HYPE), which has raised interest in whether the token could soon break through the $20 resistance level and head to new price highs. With a recent whale purchase of nearly 100,000 HYPE tokens worth $4.01 million and increasing social activity, many are wondering if this is the beginning of a bullish trend for the asset.

As of the latest market update, HYPE is trading at $17.51, marking a 12.92% increase in the past 24 hours. But while this growth is notable, the token still faces significant resistance around the $20 mark—a level that has proven difficult to surpass in recent trading sessions.

Whale’s Bold Bet: Is it a Strategic Move?

A whale recently made waves in the market by depositing $4.01 million into HyperLiquid (HYPE). Of that amount, $1.68 million was used to acquire 99,965 HYPE tokens at an average price of $16.8. The timing of this move has led to speculation about its potential impact on the token’s price.

Some traders believe the whale’s action could be a calculated bet on an impending price correction, while others view it as a sign of growing confidence in HYPE’s long-term potential. Although it’s too early to draw definitive conclusions, the size of the transaction and the whale’s willingness to invest heavily at this price point suggest there could be optimism about the token’s future performance.

Resistance at $20: Can HYPE Push Higher?

Despite the positive price movement, HYPE still faces a crucial obstacle in its price chart: the $20 resistance level. While the token has been bouncing off strong support and showing upward momentum, the $20 mark remains a tough barrier to break.

If HYPE can surpass this resistance, the next major price target could be $27.18. However, if the token fails to push through the $20 threshold, it may face consolidation or a pullback to lower price levels. Traders are closely monitoring this resistance, as overcoming $20 could signal the start of a more significant price rally.

Rising Social Volume: A Bullish Indicator?

Another factor contributing to the growing interest in HYPE is the rise in its social media activity. As of March 2, 2025, HYPE’s social volume reached 16, with its social dominance climbing to 0.986%. These metrics indicate that retail traders and market participants are paying increasing attention to the token.

Rising social volume is often a precursor to heightened buying activity, as more traders get involved in the asset. For HYPE, the growing interest on social media platforms could translate into higher buying pressure, which might help push the token’s price upward. Social dominance, which measures the asset’s influence on platforms like Twitter and Reddit, also suggests that HYPE is gaining traction.

The Impact of Circulating Supply

The circulating supply of HYPE is also a key factor to watch. As of now, 33.4% of the total supply is in circulation, with 20% of that being actively traded in the market. The remaining 66.5% of tokens are still locked away, which creates an element of scarcity.

However, the increased circulating supply, combined with a slight decrease in staked tokens, could introduce some volatility in the short term. More tokens in circulation mean more assets are available for trading, which could pressure the price. On the other hand, an increase in the buyback allocation from AF (from 4.32% to 4.9%) could help stabilize the price over time.

Conclusion: Is HYPE Ready for a Breakout?

In conclusion, HyperLiquid (HYPE) is showing signs of bullish potential, driven by whale confidence, rising social activity, and a growing circulating supply. The $20 resistance level is a critical hurdle that traders will be watching closely. If HYPE can break through this barrier, the token could be poised for further gains, possibly reaching $27.18.

However, caution is needed as the $20 mark remains a challenge, and the increasing circulating supply could introduce short-term volatility. For now, the combination of rising market interest and key strategic investments makes HYPE one to watch in the coming days.