Will Hyperliquid Price Hit $20? New Validator Model Sparks Major HYPE Price Rally

In a move for decentralization, Hyperliquid has updated its validator system, implementing a permissionless model limited to 21 nodes, so anybody can now help maintain security on the network as long as they can stake. The announcement has incited hope throughout the ecosystem as traders and developers alike see it as an opportunity for more community ownership and sustainability of the network in the long run.

Interestingly, the validator update came out with a surge in Hyperliquid price, where it is now above $18, almost a 100% recovery from its lows in April. As bullish momentum gathers pace, participants in the market will be keeping their eyes on the $20 range, as the psychological and technical resistance seems as if it could begin a new era for price appreciation for the HYPE token.

Hyperliquid Opens Validator Program to Everyone

Hyperliquid announced its validator update early Tuesday, stating that the network will now support up to 21 permissionless validators. Anyone in the ecosystem can register as a validator, but only the 21 largest by stake will actively participate in consensus. This model promotes competition and decentralization, key pillars for modern layer-1 protocols.

To qualify, validators must lock up 10,000 HYPE tokens for a period of one year. This lockup applies regardless of whether the validator joins the active set or not. According to the developers, this approach ensures long-term commitment and discourages short-term speculators from undermining the protocol’s integrity. Delegations through the Delegation Program are also expected to go live soon, expanding access even further.

Market Reaction: Hyperliquid Price Eyes the $20 Level

The validator upgrade has likely created a bullish reaction. At the time of writing, the Hyperliquid price is around $18.45, a 1% price increase on the day, but principally this price action is a double from the April 7 sell-off low of $9.30, which signals a price reversal supported by increased interest and trading volume.

Chart 1- HYPE/USDT Live Price, published on TradingView, April 22, 2025.

Many technical indicators support the uptrend. Hyperliquid is currently trading above the 50-day and 100-day Exponential Moving Averages (EMAs). The 100-day EMA is the most significant level of support in the market at $18.34. Since breaking previous resistance and the descending trendline, the market structure sentiment has changed in favour of the bulls. If momentum continues, there is a high likelihood of pushing over $20 in upcoming sessions.

Derivatives Data Reveals Bullish Underpinnings

According to Coinglass data, open interest (OI) in HYPE derivatives increased by nearly 4% to around $584 million in 24 hours. Open interest is the total value of active contracts that haven’t been resolved yet. Increases in OI usually indicate increased market participation and higher liquidity, which can accelerate the price movement in either direction.

The long-to-short ratio stays relatively balanced at 1:1, which means trader sentiment is evenly split. However, looking at liquidation data shows a slight bias towards bulls; against long positions, there has been $49,000 liquidated in shorts and $31,000 in longs. This basically means that bearish convictions are getting squeezed right now as their prices increased and are likely being bought back to close losing shorts.

Key Indicators Point to Sustained Uptrend

The Relative Strength Index (RSI) currently sits at 64.41, approaching the overbought threshold but still signaling strong bullish momentum. A rising RSI in tandem with increasing price and volume often precedes extended rallies. The Money Flow Index (MFI) also supports the upward trend, though it is nearly overbought at 79.88, hinting at potential profit-taking ahead.

Hyperliquid’s decision to democratize validator access is a game-changing validator update that has positively impacted the Hyperliquid price. The HYPE token is showing strong signs of a sustained uptrend, supported by rising technical indicators, increased open interest, and strategic protocol developments.

While caution is advised due to near-overbought signals in some indicators, the broader market structure remains bullish. The Hyperliquid price has momentum on its side and could soon clear the $20 barrier, a key psychological milestone that would further validate the project’s growing credibility and community backing.