Pepe Rose 12% and Hyperliquid Nearly 10% This Week While Bitcoin Fell. Can Either Keep Climbing?

Pepe (CRYPTO:PEPE) and Hyperliquid (CRYPTO:HYPE) each rose 7% over the past week, making them the top performers among the 60 largest cryptocurrencies. In contrast, Bitcoin (CRYPTO:BTC) experienced a decline of 3.7%. Currently, Pepe is trading at $0.00000483, HYPE is trading at $86, and Bitcoin sits at $77,609.

Pepe’s strong performance this week continues a positive trend, with its price up about 13.3% over the last 30 days and 67.9% over the past 90 days. However, it remains significantly lower—82.8%—than its all-time high of $0.000028 recorded on December 9, 2024. Meanwhile, Hyperliquid’s recent growth looks more like a recovery, as its price is still down roughly 3.3% over the last month. HYPE ranks 10th by market value and is currently 12% below its all-time high of $98 set on September 23.

So, what’s driving these price movements? Pepe benefited from a shift in interest towards meme coins without any major news announcements, while Hyperliquid’s rise was sparked by a regulatory headline that still requires final approval. Both tokens are relying on buyer interest and potential regulatory changes that have yet to materialize.

Pepe Rode a Meme-Coin Rotation and Absorbed a Hacker’s $32 Million Sale

Pepe is a meme coin—a cryptocurrency built around internet humor, with no underlying product, revenue, or business model. Consequently, its price tends to fluctuate with public attention and as traders move investments from older meme coins like Dogecoin (CRYPTO:DOGE) and Shiba Inu (CRYPTO:SHIB) to currently trending ones.

The most visible event on the blockchain came from a seller. According to Lookonchain, which monitors public blockchain wallets, a wallet associated with the Binance hack sold 7.77 trillion PEPE, valued at around $32 million, on October 30. Remarkably, despite this large sale, the price still rose, suggesting strong liquidity that allows substantial transactions without drastically affecting price.

Trading volume also highlights a similar trend. PEPE recorded its highest weekly trading volume since at least September 20 during the week ending November 1. However, it peaked at $0.00000568 before closing at $0.00000488, suggesting many holders sold as the price surged.

The Pepe Price Has Slipped Back Under Its $0.00000502 Closing High

The price rise could be partly attributed to forced buying. In cryptocurrency trading, short sellers borrow PEPE to sell it, hoping to buy it back later at a lower price. When the price increases too much, exchanges automatically close their positions by repurchasing the coins, causing a temporary price surge. However, this buying frenzy will cease once all short positions have been liquidated. Unfortunately, data on PEPE liquidations from the past week is currently unavailable.

PEPE has dropped back below its recent closing high of $0.00000502 from October 28, which is roughly 4% higher than its current price. It has also fallen about 3% since October 31, despite a 4.3% gain over the last 24 hours.

The size of the two cryptocurrencies contributes significantly to the price movements. Pepe ranks 45th by market value, compared to Bitcoin’s top position, meaning that fewer buyers can impact its price. At the same time, Bitcoin’s recent trading activity has kept it below its 20-day moving average of $80,528 and its 50-day average of $81,924, signaling a short-term downward trend.

Hyperliquid’s Rebound Leans on a CFTC Decision That Hasn’t Come

Hyperliquid, an exchange specializing in perpetual futures that lets traders speculate on prices using borrowed funds, is represented by its token, HYPE. Its recent bounce from a 30-day closing low of $76 on October 25 gained momentum after a report on October 29 said Intercontinental Exchange (NYSE:ICE | ICE Price Prediction) plans to facilitate U.S. markets for Hyperliquid-based perpetual futures via trade[XYZ].

ICE later clarified that the plan depends on regulatory approval from the Commodity Futures Trading Commission (CFTC), the U.S. body overseeing futures markets. The timing of this approval has kept traders anxious as they await confirmation.

Additionally, Hyperliquid conducts buybacks through its Assistance Fund, which utilizes trading fees to purchase HYPE tokens from the market. Because this fund spends only fees already earned by the exchange, buybacks rise with trading activity and fall when trader engagement is low.

$612 Million of HYPE Longs and Locked Supply Weigh on the Rally

HYPE has been trading above its 20-day moving average of $81, its 50-day moving average of $86, and its 200-day average of $67, but it’s currently less than 1% above the 50-day figure. The next resistance levels to watch are the $94 closing high from October 5, about 9% higher, and the all-time high of $98.

However, multiple risks lie beneath HYPE’s current price. Approximately $612 million in leveraged long positions sit below the current price. These trades profit if HYPE increases, but if the price drops significantly, exchanges may be forced to liquidate those positions, potentially triggering further downward movements. Supply is another concern, as approximately 239 million HYPE tokens are in circulation out of a 1 billion cap. This results in a fully diluted market value of around $86 billion against a current market cap of $21 billion, creating additional pressure on the token’s price when new tokens enter the market.

Can Pepe or Hyperliquid Keep Climbing?

Pepe’s future growth seems uncertain as its recent surge relies heavily on continued interest and new investors. After reaching a one-year high of $0.00000719 on January 4, Pepe swiftly fell to $0.00000232 by July 1. For PEPE holders, it’s crucial to watch for a daily close above $0.00000502. Failure to break through this level may repeat the sharp slide that followed January’s high.

On the other hand, Hyperliquid appears to have stronger growth potential. Its demand is linked to a fee-generating exchange and the anticipation of regulatory approval. However, this potential largely depends on the CFTC giving the green light, which has yet to occur. If Hyperliquid closes above $94, it could signal that buyers are willing to invest heavily ahead of formal regulatory approval. Without CFTC action, a drop below the $86 50-day average seems more likely, which could endanger the $612 million worth of long positions.

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