HYPE Coin is drawing renewed market attention after a strong rebound from recent lows, with traders now questioning whether the price could reach the $50 mark. The shift in sentiment follows Sonnet’s approval of a major $1 billion digital asset merger, which has boosted confidence across the ecosystem. The asset has also reclaimed the lower boundary of its broader channel, reinforcing its recovery and encouraging additional buying interest.
Short-term structure shows Hyperliquid price action tightening into a key decision area, prompting closer analysis of both the chart pattern and the expected impact of Sonnet’s treasury initiative.
A double-bottom pattern has clearly formed around the $30 demand zone, triggering a strong upward rotation. Buyers regained control inside the channel, and HYPE continues to form higher lows as it advances toward the channel mid-line. While price swings remain within a falling channel, each approach to the lower boundary has been met with immediate upward reaction, adding strength to the ongoing recovery.
At the current valuation of $33.8, HYPE is heading toward the crucial $36.25 resistance level. A breakout above this threshold would open the path toward $42.96, with the broader target of $50 becoming more realistic if buyers maintain pressure at the upper channel boundary. Compression in recent sessions suggests the pattern is stabilizing, strengthening the short-term outlook.
The rebound area now forms a strong technical floor, giving price action a more reliable platform for continuation. As long as the asset stays above its recovery zone, the broader Hyperliquid outlook improves.
Sonnet’s $1 billion digital asset treasury initiative is also reshaping demand expectations. With shareholder approval secured, the plan enables structured purchases of up to 2.6 million HYPE, backed by an initial allocation of at least $265 million. This major deployment of capital provides a strong demand anchor for the asset, reinforcing long-term confidence.
The treasury plan is also positioned to help offset the upcoming 314 million token unlock. Research from OAK shows that buybacks already reach up to $2.5 million per day, and further capital inflows could tighten supply even more. Traders expect increased participation as the treasury schedule advances.
The merger removes previous uncertainty and introduces clear commitments supported by substantial resources. As a result, HYPE is displaying a stronger trend with upward liquidity pressure.
HYPE continues to build a constructive structure following its rebound from $30. Sonnet’s treasury framework signals significant potential demand, while the price outlook becomes clearer as long as the asset stays above its recovery base. A confirmed breakout above $36.25 strengthens the route toward $42.96 and the key $50 target.
