Why is HYPE rallying 17% as ICE and Druckenmiller invest in tradeXYZ for US expansion?

• Round-the-clock trading in Hyperliquid perpetual futures could reach a dedicated US venue under plans by ICE and trade[XYZ], subject to CFTC approval.
• Following the partnership, billionaire investor Stan Druckenmiller disclosed on X that he has invested in trade[XYZ].
• A 17% rally puts a fresh all-time high within HYPE’s sights.

A 17% surge in Hyperliquid (HYPE) on Thursday followed news that Intercontinental Exchange (ICE) will team up with trade[XYZ] to introduce Hyperliquid-based perpetual futures markets in the US. The partnership advances efforts to bring on-chain derivatives trading into a regulated framework, with billionaire investor Stan Druckenmiller also set to invest in trade[XYZ].

Can ICE bring Hyperliquid perps to the US?

Through an announcement issued on Thursday, ICE disclosed a definitive agreement with trade[XYZ] that would give US customers access to the latter’s perpetual markets, provided the Commodity Futures Trading Commission (CFTC) grants regulatory approval.

The deal gives ICE exclusive responsibility for operating trade[XYZ]’s regulated markets and includes a strategic investment in the company. Retail traders would gain 24/7 access through the proposed venue to perpetual contracts covering crypto, equities, stock indices, commodities and foreign exchange.

To keep institutional customers insulated from the new venue’s trading and counterparty risks, ICE said the business would remain separate from its existing institutional futures and clearing operations. This structure is designed to support the expansion of its retail trading business.

Distribution through established brokers and trading platforms is also planned by the companies, with ICE’s joint venture with crypto exchange OKX among the channels. Separate regulatory approvals would be required for access through that partnership.

Explaining the approach, Jeffrey C. Sprecher, Chairman and CEO of ICE, said: “We intend to find retail traders where they want to be, through the partners, brokers, and platforms they already use. We see these perp markets as additive to our futures markets, not a replacement for them,”

Before the announcement, an X post by billionaire investor Stan Druckenmiller disclosed his investment in trade[XYZ].

By reposting Druckenmiller’s announcement, SpaceX and Tesla CEO Elon Musk also expressed interest in the development.

An earlier announcement by Payward, the parent company of crypto exchange Kraken, preceded the ICE agreement.

Payward outlined plans for US perpetual futures markets using Hyperliquid’s HIP-3 infrastructure, although the proposed deployment would require regulatory approval.

Responsibility for creating and administering the markets, along with clearing and settlement, would sit with Bitnomial, Payward’s regulated exchange and clearing organisation. Customer accounts would be carried by NinjaTrader Clearing.

HIP-3*, a proposed extension allowing market deployers to limit access using on-chain allowlists, is expected to underpin the initiative. According to Hyperliquid, the feature is optional, so existing HIP-3 markets would operate without changes.

Separately, cumulative buybacks and burns by Hyperliquid have reached roughly 49.87 million HYPE. At current prices, these tokens are worth about $3.89 billion and account for roughly 5% of the maximum supply of 1 billion tokens.

Over the past 24 hours, a further 19,700 HYPE, worth approximately $1.59 million, was reportedly burned by the protocol. For the same period, estimated protocol fees totalled $1.69 million, with cumulative protocol revenue at approximately $1.38 billion.

Hyperliquid technical outlook: Can HYPE set a new all-time high above $97.9?

Thursday’s gain of more than 17% has brought HYPE close to resistance at its all-time high of $97.9. If that barrier gives way, the token could advance to $100.9. This target is derived by projecting the height of the descending triangle upwards from the breakout point.

Before the latest advance, HYPE had moved above the horizontal $85 level and the 20-day and 50-day Exponential Moving Averages (EMAs) near $82. Should the token fail to establish a fresh record high, those levels will now act as support.

With readings of 69 and 88, respectively, the Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) sit in overbought territory. These readings suggest the rally is increasingly stretched and could lose momentum.