The Nasdaq-listed biotechnology company, Sonnet BioTherapeutics, announced on Monday that it has formed a business combination with a newly established entity, Rorschach, to launch the Hyperliquid digital asset treasury (HYPE).
When the deal is completed, Hyperliquid Strategies Inc. aims to hold 12.6 million HYPE tokens and $305 million in cash. This amount will be used to purchase more HYPE tokens in the future.
Can HYPE increase in price after the establishment of the HYPE digital asset treasury? Let's find out with Bitcoin Magazine.
HYPE price prediction
HYPE has turned down from the psychological level of $50 on Monday, but a positive sign is that the bulls have not yet given in to pressure from the bears.
The upward-sloping moving averages and the relative strength index (RSI) near the overbought zone indicate that buyers are still in control.
If the price rebounds from $45.80, it indicates that the bulls have flipped this level to support, increasing the likelihood of surpassing $50. The HYPE/USDT trading pair could then target $60.
Sellers will need to push the price below the 20-day exponential moving average (EMA) around $42.93 to weaken the upward momentum. HYPE could form a short-term peak if the price slides below the 50-day simple moving average (SMA) at $38.86.
This trading pair is witnessing a fierce battle between the bulls and bears near the 20-day EMA line on the 4-hour chart.
The 20-day EMA is flat and the RSI indicator is just above the midpoint, indicating that neither the bulls nor the bears have yet found an advantage in the short term.
Buyers will need to push the price above $50 to take control, aiming to drive the price toward $60. Conversely, the short-term trend will tilt towards the bears if they pull the price below the 50-day SMA line. This could trigger a deeper correction towards $41.
