HYPE Token Rebounds as Ripple Prime Expands Access to Hyperliquid Markets

The HYPE token experienced a rebound on Friday, trading at around $81.88, recovering from a decline that saw it drop to approximately $77.59 earlier in the day. This fluctuation followed a stronger-than-expected inflation report from the US, which raised concerns about the Federal Reserve's interest rate policies and impacted risk-sensitive assets.

The Producer Price Index for September increased by 6.3% year over year, surpassing the anticipated 5.3%. This unexpected rise in inflation has renewed discussions regarding potential interest rate hikes by the Federal Reserve, which in turn affected market sentiment.

Despite the earlier losses, leveraged bullish positions helped absorb much of HYPE's liquidation losses, with data from CoinGlass indicating around $7 million in long liquidations compared to $810,000 in short positions. Although HYPE managed to recover above the $80 mark, it still remains below key short-term moving averages, indicating ongoing market volatility.

In a significant development, Ripple announced that Ripple Prime has launched real-world asset perpetual swaps that cover over 100 reference markets. These products include a diverse range of assets such as equities, equity indices, exchange-traded funds, metals, energy, and foreign exchange, with trading and settlement available 24/7.

Ripple Prime serves as the principal counterparty for these swaps, allowing institutional clients to access these products through brokerage services rather than requiring direct trading on the decentralized platform. This initiative aims to strengthen the link between institutional brokerage services and Hyperliquid's derivatives infrastructure, although it does not guarantee an immediate increase in demand for the HYPE token itself.

Ripple Prime Enhances Trading Flexibility with New Collateral Options

Eligible clients can utilize Ripple's RLUSD stablecoin as collateral for the new swaps, and Ripple Prime also offers cross-margining across eligible asset classes. This feature enables institutions to manage their collateral requirements and portfolio risks more effectively.

Market maker Virtu is among the institutions already leveraging these new products, according to Ripple. The service is currently available through Ripple Prime's CIV BVI license, with plans for expansion to additional regions, although no specific timeline has been provided.

In a related announcement, EQX Labs revealed plans to introduce 11 tokenized US equity and ETF markets on Hyperliquid's HyperCore infrastructure. This new offering will include tokens for major companies like Apple, Nvidia, Amazon, and Tesla, as well as ETFs that track significant US markets. These tokenized products will trade on Hyperliquid's public order book and will be backed by shares held in custody.

Market Trends Suggest Cautious Optimism for HYPE Token's Future

While these new products differ from the perpetual derivatives introduced by Ripple Prime, they collectively indicate a growing trend towards integrating traditional market exposures within the Hyperliquid ecosystem. Despite the recent rebound, HYPE's daily chart shows a slightly bearish tone, remaining above its 100-day Exponential Moving Average at $76.30 but below the 50-day EMA at $83.10 and the 20-day EMA at $85.40.

The Relative Strength Index is currently near 43, indicating a lack of strong momentum, while the Stochastic Oscillator is around 20, suggesting weak momentum near oversold territory without confirming a reversal. Initial resistance for HYPE is identified at $83.10, with further resistance at $85 and the 20-day EMA at $85.40. A sustained recovery above these levels could bring the price target of $97.80 into focus. Conversely, the 100-day EMA at $76.30 and horizontal support at $75.70 represent critical defensive zones, with potential declines exposing further support levels at $67.60, $61.10, and $51.50.