Hyperliquid price rallied over 20% in the past seven days, reclaiming $40 as support, driven by record commodities trading activity on its perpetual futures markets.

According to data from crypto.news, Hyperliquid (HYPE) price rallied 22% to a four-month high of $42.1 on Wednesday, March 18, before stabilizing around $41.3 at the time of writing. At this price, it remains up over 38% in the past month and 100% above its year-to-date low.

Hyperliquid’s price surge can primarily be attributed to record-breaking activity in commodity perpetual futures, specifically Crude Oil (WTI) and Silver, enabled through its HIP 3 framework.

On-chain data shows that oil-linked perpetual contracts on Hyperliquid surpassed $1.2 billion in 24-hour trading volume, making them the second most traded assets on the platform after Bitcoin.

Another major catalyst supporting HYPE tokens’ gains is the surge in whale activity on the platform. According to recent reports, whales have positioned at least $3.6 billion in positions across its leveraged markets. This, in turn, increased the liquidity and market depth, creating a virtuous cycle for further price appreciation.

Adding another layer of utility, Hyperliquid has become a 24/7 macro barometer for traders seeking to hedge or speculate on oil and metals prices that have soared to record highs amid geopolitical tensions in the Middle East. Traditional markets like the CME and ICE remain closed during weekends and holidays.

Meanwhile, the surge in the platform’s trading fees driven by this commodity frenzy is fueling expectations of increased token buybacks, as the protocol is mandated to use a vast majority of revenue to support the HYPE token via its Assistance Fund.

Hyperliquid price analysis

On the daily chart, Hyperliquid price seems to be rising within an ascending parallel channel pattern, a popular bullish continuation pattern in technical analysis.

Amidst its recent surge, HYPE price has surpassed its Feb. 3 high of $38.4, which had been acting as a stubborn resistance level.

Technical indicators seem to confirm this strength. Notably, the Aroon Up showed a reading of 100% in comparison to a 14.29% reading on its down counterpart, a sign that the uptrend is exceptionally strong and trending toward new highs.

At the same time, the Chaikin Money Flow index showed a positive reading of 0.16. Positive readings on this metric indicate that buying pressure is dominant and that capital is flowing steadily into the asset.

Hence, the path of least resistance for Hyperliquid price suggests a potential rally past the $50 psychological resistance.

A sharp break above this key resistance amid strong bullish momentum could push prices towards its all-time high of $59.30, especially if the ongoing tensions in the Middle East continue to drive traders toward decentralized commodity markets over the coming weeks.