Key takeaways

• HYPE trades below $59 after recording a second consecutive day of gains.
• The Hyperliquid Policy Center and trade[XYZ] have submitted recommendations on pre-IPO perpetual markets to the SEC.
• The proposed instruments would provide price exposure before a company lists publicly without granting shares or investor rights.

Hyperliquid (HYPE) trades above $58 on Wednesday, extending its recovery for a second consecutive session as buyers target a breakout above the psychological $60 level.

The decentralized exchange’s native token maintains a broadly bullish technical structure above its major moving averages. Momentum indicators are also improving without suggesting that the rally has become excessively stretched.

The advance comes as the Hyperliquid Policy Center and trade[XYZ] urge the US Securities and Exchange Commission to establish rules that would allow American investors to access pre-IPO perpetual markets.

Hyperliquid submits pre-IPO market proposal to SEC

The Hyperliquid Policy Center and trade[XYZ], a prominent deployer of perpetual markets on Hyperliquid, jointly submitted a comment letter responding to the SEC’s request for proposals to modernize the Initial Public Offering process.

Their letter highlighted the pricing history of at least five trade[XYZ] pre-IPO perpetual, or IPOP, markets that completed their full lifecycle on Hyperliquid.

The organizations argued that these markets can provide transparent, continuously updated price signals before a company’s shares begin trading publicly.

They also outlined regulatory questions the SEC would need to address before permitting similar products in the United States.

An IPOP is a financial instrument that allows traders to take a directional position on a company’s expected valuation ahead of a scheduled stock market listing.

The contract provides price exposure during the period before the company’s shares become publicly tradable. Prices update continuously based on market demand, potentially offering investors and issuers an early indication of expected listing value.

However, an IPOP is not equivalent to owning pre-IPO equity.

Contract holders do not receive actual shares, allocation rights or voting power. They also have no direct claim against the company referenced by the instrument. The product is designed solely to provide exposure to anticipated price movements ahead of a public listing.

Hyperliquid’s policy organization said American investors are unable to access price opportunities available to traders in other jurisdictions.

It cited SpaceX as an example, saying its pre-IPO perpetual market was priced at $135 before the company listed at $150.

According to the organization, the market provided a visible pricing signal, but US investors had no regulated way to trade it.

Under a new SEC framework, Hyperliquid argued, both American investors and issuers could benefit from the price discovery offered by pre-IPO markets.

Supporters may view such instruments as a way to broaden market access. However, the products could expose retail traders to substantial risks, including leverage, uncertain valuation, limited disclosure and price manipulation before public-market data becomes available.

HYPE maintains bullish structure above major EMAs

HYPE trades at approximately $58.73, retaining a constructive technical outlook. The token remains above its 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs). 

This bullish alignment places all three indicators below the current price and provides several potential layers of support.

The Moving Average Convergence Divergence indicator has moved firmly into positive territory, signaling strengthening upside momentum.

Meanwhile, the Relative Strength Index stands near 56. The reading indicates steady buying pressure but remains well below the conventional overbought threshold of 70, leaving room for additional gains.

Immediate support sits at the 50-day EMA around $58.33. Holding this level would preserve HYPE’s near-term bullish structure and support another attempt to clear $60.

Below it, the 100-day EMA at $56.76 represents the next support area. A deeper decline could bring the 200-day EMA at $51.68 into focus as the more important longer-term bullish threshold.

On the upside, a descending resistance trendline remains the main structural obstacle. A sustained daily close above this trendline and the $60 region could confirm a breakout and allow HYPE to extend its recovery.

Failure to clear the resistance zone could encourage profit-taking and push the token back toward the clustered EMA support levels.

For now, the stacked moving averages and positive momentum indicators favor buyers, but HYPE requires a confirmed trendline breakout to strengthen its broader bullish outlook.