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• The POPCAT manipulation caused the Hyperliquid HLP to absorb $5M in losses.
• Hyperliquid’s token price currently trades below key EMAs amid bearish momentum.
• HYPE’s retail demand has dropped, and futures Open Interest has fallen to $1.56B.

Hyperliquid price has come under intense pressure following a sophisticated POPCAT attack that left the decentralised derivatives platform reeling from multi-million-dollar losses.

The POPCAT hack, which targeted Hyperliquid’s liquidity provider system, exposed vulnerabilities in Hyperliquid’s risk management while raising concerns about retail demand and overall market sentiment for HYPE tokens.

POPCAT attack led to a $5M HLP loss

The POPCAT attack unfolded on November 12, when a trader executed a series of manipulative trades across the POPCAT token market, using multiple wallets to create an artificial buy wall.

According to on-chain analysts, the trader deployed roughly $3 million in USDC from the OKX exchange, distributing it across 19 separate addresses.

These wallets then opened nearly $30 million in leveraged long positions, inflating the price of POPCAT to over $0.21.

Once the buy wall was removed, the POPCAT price plunged sharply, causing mass liquidations.

Hyperliquid’s market-making system, Hyperliquid Provider (HLP), was forced to absorb the resulting positions due to thin liquidity in the market.

In total, HLP incurred losses of approximately $4.9–$5 million.

The remaining long positions were passed to the Hyperliquidity Provider (HLP) to liquidate.

HLP appears to have lost $4.95M closing out the positions. pic.twitter.com/Qfq9jcy4Mz

— Arkham (@arkham) November 12, 2025

During the crash, the price of POPCAT fell from $0.21 to $0.13, leaving Hyperliquid to manually close positions to prevent further financial damage.

The attack highlighted how coordinated movements of large capital through multiple wallets can destabilise decentralised platforms.

Looking at how the attack unfolded, there are connections to prior manipulative behaviour observed on tokens such as TST, ZEREBRO, JELLYJELLY, and HIFI, although Hyperliquid emphasised that deposits and withdrawals were ultimately restored and normal trading resumed.

Implications for Hyperliquid and DeFi markets

Notably, the POPCAT attack underscores ongoing risks for decentralised exchanges that handle leveraged tokens.

While HLP successfully absorbed the losses and protected liquidity providers, the event demonstrates how thin liquidity and concentrated positions can amplify the effects of market manipulation.

Some commentators on Crypto Twitter have suggested that such attacks may not always be profit-driven, but rather aimed at undermining the reputation of decentralised platforms.

On-chain forensic analyses have scrutinised links between wallets used in the manipulation and entities such as BTX Capital, though allegations remain unproven.

Hyperliquid’s response, including a temporary pause on its Arbitrum bridge, helped mitigate further destabilisation.

However, the incident is likely to weigh on investor sentiment, especially as retail demand for HYPE has remained low following a significant reduction in futures Open Interest over the past month.

Futures Open Interest for HYPE has also contracted from $2.08 billion at the end of October to $1.56 billion, signalling declining risk appetite among traders.

HYPE price reaction to the attack

Despite the loss, Hyperliquid’s HYPE token showed relative resilience in the immediate aftermath.

HYPE price rose modestly from $37.77 to $39.39 following the resolution of the attack, indicating that broader retail confidence in the token remained intact.

However, the token has since pulled back to around $38.09 at press time, hinting at a cautious long-term outlook.

Technical indicators paint a bearish picture, with HYPE trading below its 200-day Exponential Moving Average (EMA) just below $39 and failing to surpass the 50 and 100-day EMAs around $43.

Momentum indicators, including the MACD and RSI, suggest persistent selling pressure, and analysts warn that a decisive break below the $35 support level could accelerate a decline toward the $30 mark.

Key takeaways

• Solana is down 10% in the last 24 hours and is now trading below $140.
• The coin could dip further as the market sentiment weakens.

Market sentiment weakens as cryptos suffer huge losses.

SOL, the sixth-largest cryptocurrency by market cap, has lost 13% of its value this week, making it the third consecutive week of recording losses. The bearish performance comes despite the two-week-old Solana spot Exchange Traded Funds (ETFs) in the US recording the lowest net inflows ever, suggesting softer institutional demand. According to Sosovalue, the US Solana spot ETFs logged $1.49 million net inflow on Thursday, mainly driven by the Bitwise Solana staking ETF. This was the lowest inflow since the inception of Solana ETFs, suggesting a decline in demand from institutional investors. 

In addition to that, CoinGlass data reveals that the SOL futures Open Interest (OI) is down 3.34% in the last 24 hours to $7.35 billion. This suggests that futures traders are either closing long positions or reducing leverage. 

In line with the current market conditions, the OI-weighted funding rate has shifted to a negative level of -0.0076% from near-neutral levels earlier in the day, indicating that traders are holding more short positions. If the current market conditions persist, the recovery would be a tough battle for bulls. 

Will Solana extend the decline to $120?

The SOL/USD daily chart remains bearish and efficient as Solana has underperformed in recent days. The coin is edging lower for the fourth consecutive day this week after breaking below the $150 psychological level a few hours ago. 

At press time, SOL is trading at $138 and is aiming for the $126 low from June 22. If SOL breaks below this low, it could test the $100 psychological support over the coming days or weeks. 

The Relative Strength Index (RSI) dips to 36 on the same chart, oscillating towards the oversold zone, indicating selling pressure. The Moving Average Convergence Divergence (MACD) also failed to cross above the signal line, extending the downward trend.

However, if the technical indicators improve and SOL maintains its value above $126, it could record a slight recovery towards the $155 demand-turned-supply zone. The next resistance level at $175 could prove challenging in the near term.

• The UAE’s Federal-Decree Law No. 6 of 2025 came into effect on 16 September.
• Article 62 places APIs, explorers, and decentralised platforms under Central Bank control.
• Article 61 regulates all marketing, emails, and online posts about crypto services.

In a sharp pivot from its crypto-friendly image, the United Arab Emirates has enacted sweeping new legislation that classifies basic cryptocurrency infrastructure, including Bitcoin wallets, as potentially criminal unless licensed by the Central Bank.

Legal experts from Gibson Dunn have flagged the law’s scope as unusually broad, warning that its language introduces significant risk for global technology providers.

This shift, embedded in Federal-Decree Law No. 6 of 2025, comes into force from 16 September and carries global consequences for developers and platforms offering crypto access.

The law replaces the 2018 banking statute and significantly widens the definition of financial activity. What sets this legislation apart is not only its scope but also its enforcement teeth.

Penalties for non-compliance range from fines of AED 50,000 to AED 500,000,000 (up to $136,000,000) and may include imprisonment.

Importantly, this applies not just to entities operating within the UAE but also to those whose products are accessible from within the country.

Licensing now applies to wallets, APIs and even analytics

The most consequential element of the new law is found in Article 62. It grants the Central Bank control over any technology that “engages in, offers, issues, or facilitates” financial activity.

The wording is broad enough to encompass self-custodial wallets, API services, blockchain explorers, analytics platforms, and even decentralised protocols.

This marks a fundamental change in how crypto infrastructure is regulated in the UAE.

Previously, licensing obligations focused on traditional financial entities, but the updated framework shifts this focus to include software and data tools.

According to developer analysis, even public-facing tools such as CoinMarketCap and open-source Bitcoin wallets may now require licensing to remain accessible within the UAE.

For the first time, developers may face criminal penalties for offering unlicensed crypto tools, even if they are based abroad.

This extension of jurisdiction signals a new regulatory posture that treats access to crypto as tightly as its ownership or exchange.

Communications and marketing now fall under regulation

The crackdown does not stop at financial infrastructure. Article 61 of the same law defines the marketing, promotion, or advertising of financial services as a licensable activity.

In practice, this means that simply hosting a website, publishing an article, or sharing a tweet about an unlicensed crypto service could be considered a legal violation if that content reaches UAE residents.

This change dramatically expands the compliance footprint for companies and developers.

Gibson Dunn highlights that these provisions materially broaden the enforcement perimeter, especially for firms with no formal presence in the UAE.

The law applies to communications that originate outside the country but are accessible inside it.

The result is a regulatory landscape where developers, content creators, and infrastructure providers must weigh whether their platforms are indirectly accessible by users in the UAE.

In many cases, avoiding legal exposure may require disabling access or halting service altogether.

Dubai’s free zones no longer shield crypto services

Over recent years, the UAE has positioned itself as a hub for blockchain innovation.

Jurisdictions such as Dubai’s Virtual Assets Regulatory Authority (VARA) and Abu Dhabi Global Market (ADGM) attracted global attention with purpose-built crypto licensing frameworks.

However, the new federal law overrides these free-zone arrangements, asserting Central Bank control nationwide.

Federal law supersedes any rules introduced by the UAE’s free zones, effectively dissolving the regulatory arbitrage that once drew companies to Dubai.

The broader context includes the country’s history of digital restrictions.

For instance, WhatsApp voice calls remain blocked across the UAE, reinforcing a consistent policy approach to centralised control over communications and digital tools.

While this may bring the UAE in closer alignment with international pressure from groups like the Financial Action Task Force, it also puts crypto service providers in a difficult position.

In other jurisdictions facing similar pressure, firms have withdrawn entirely to avoid enforcement risk.

Enforcement begins in 2026, with further rules expected

Entities have a one-year window from 16 September 2025 to come into compliance. This grace period may be extended at the discretion of the Central Bank.

During this time, further regulations are expected to clarify how these broad rules will be applied in practice.

Despite this, the scope of the law is already causing concern.

The language around facilitation and communication, combined with the severe penalties under Article 170, suggests that firms offering crypto tools globally must now consider the risk of incidental exposure to UAE users.

For software developers and platform operators, this marks a significant departure from the norms of decentralised access and open-source innovation.

• The Central Bank of Ireland granted the licence through Aave’s local subsidiary.
• Push allows users to convert euros to crypto assets, including GHO, with no fees.
• Ireland is emerging as a hub for regulated decentralised finance in Europe.

Decentralised finance infrastructure took a decisive step into Europe’s regulated fintech ecosystem as Aave Labs secured authorisation under the Markets in Crypto-Assets (MiCA) framework.

The regulatory nod, granted by the Central Bank of Ireland, enables Aave Labs’ fiat-to-crypto platform, Push, to operate across the European Economic Area (EEA).

This means European users can now convert between euros and digital assets, including Aave’s native stablecoin, GHO, without relying on centralised exchanges.

The approval makes Push one of the first DeFi-native platforms legally authorised to offer stablecoin ramps in Europe.

Operated through Push Virtual Assets Ireland Limited, a wholly-owned subsidiary, the platform introduces zero-fee euro-crypto conversions, giving it a price advantage over traditional financial service providers and exchanges.

However, Aave Labs did not clarify whether this pricing model is permanent.

Aave’s decision to launch Push from Ireland reinforces the country’s position as a rising regulatory hub for digital assets in Europe.

Push targets centralised exchange reliance on stablecoin onboarding

Push aims to eliminate the friction associated with fiat on-ramping by creating a direct, regulated pathway between euros and crypto assets within Aave’s ecosystem.

The platform’s focus on euro liquidity and GHO integration supports the broader goal of reducing DeFi’s reliance on centralised exchanges for stablecoin access.

Aave Labs described regulatory infrastructure as essential to onboarding the next wave of mainstream DeFi users.

With Push, the protocol creates a gateway for users and developers to interact with stablecoins under a framework that complies with MiCA’s legal and auditing requirements.

That assurance of regulatory transparency is particularly relevant as stablecoin use continues to expand in lending, borrowing, and yield farming protocols.

Stablecoin regulation fuels Europe’s crypto market integration

MiCA’s stablecoin framework plays a central role in enabling services like Push to thrive.

The legislation, which came into effect earlier in 2025, establishes clear rules for stablecoin issuance and crypto-asset service providers (CASPs) in the EU.

Aave’s authorisation under MiCA signals that regulators are increasingly open to DeFi-native firms participating in the financial system, so long as compliance benchmarks are met.

As a DeFi-first platform offering institutional-grade liquidity, Aave’s move to operate within MiCA guidelines marks a turning point in how decentralised services are integrated with traditional financial structures.

Push’s entry is likely to be watched closely by peers and competitors, especially as the stablecoin sector continues to scale at pace.

While Push currently centres on euro and GHO conversions, the groundwork laid in Ireland could see broader service expansions as MiCA regulations continue to shape Europe’s crypto infrastructure.

Aave’s success may prompt other DeFi protocols to follow suit, potentially turning the EEA into a hub for regulated stablecoin innovation.

• JPMorgan sets Bitcoin’s support price near $94K, citing rising mining costs.
• Analysts project Bitcoin could climb to $170K based on gold market parity.
• Bitcoin’s downside seen as limited after network difficulty raises production cost.

JPMorgan analysts said Bitcoin’s downside risk appears to be minimal at current levels, citing the cryptocurrency’s rising production cost as a key technical support.

In a note published Wednesday, the bank’s team led by Nikolaos Panigirtzoglou, managing director at JPMorgan, placed Bitcoin’s estimated support price around $94,000, suggesting the cryptocurrency has limited room to fall from its recent level of roughly $102,300.

Rising production costs set new support level

According to JPMorgan, the estimated cost to produce one bitcoin — often viewed as a proxy for the cryptocurrency’s “floor” price — has risen from about $92,000 to approximately $94,000.

This increase, the analysts said, is largely driven by a sharp rise in Bitcoin network difficulty, which measures how much computing power is required to mine new blocks.

As network difficulty climbs, miners must deploy more energy and hardware resources to maintain output, effectively increasing the marginal cost of producing new coins.

The analysts noted that Bitcoin’s price-to-production cost ratio now sits just above 1.0, placing it near the lower end of its historical range.

“The bitcoin production cost has empirically acted as a floor for bitcoin,” the analysts wrote, adding that “a $94,000 production cost implies very limited downside to the current bitcoin price.”

Historically, production costs have correlated closely with Bitcoin’s longer-term valuation trends, as mining profitability often influences both network participation and supply dynamics.

The current alignment, JPMorgan said, supports the view that downside risk is constrained unless broader market sentiment deteriorates further.

Upside scenario points to $170,000 target

While downside appears limited, JPMorgan reiterated its 6–12 month upside projection of about $170,000 for Bitcoin, based on a volatility-adjusted comparison to gold.

The analysts explained that Bitcoin currently consumes around 1.8 times more risk capital than gold, implying that its market capitalization could rise substantially to reach parity with gold’s level of private-sector investment.

At present, Bitcoin’s market cap stands near $2.1 trillion, while approximately $6.2 trillion is invested in gold via exchange-traded funds, bars, and coins.

“On that basis,” the note said, “Bitcoin’s market capitalization would need to rise by about 67%, implying a theoretical price close to $170,000.”

The analysts said this valuation framework reflects long-term potential rather than a near-term forecast.

Market sentiment, regulatory conditions, and liquidity factors will continue to influence how quickly Bitcoin might approach such levels.

Market context and sentiment shift

Last month, JPMorgan’s analysts issued a similar analysis, calling Bitcoin undervalued relative to gold and suggesting a possible year-end target around $165,000.

However, in a Block report, Panigirtzoglou said that recent liquidations and negative market sentiment made such a near-term rally unlikely.

Earlier in August, the same team projected a year-end target of about $126,000, which Bitcoin briefly surpassed on October 6, hitting an all-time high above $126,200 before a major liquidation event on October 10.

Despite recent volatility, JPMorgan’s latest note underscores a cautiously optimistic outlook.

With network fundamentals strengthening and production costs rising, analysts view current prices as near structural support levels — leaving room for long-term appreciation if broader market confidence returns.

Key takeaways

• ETH is down 1.5% and is now trading above $3,500 per coin.
• The positive performance comes as whales accelerate buying pressure.

Whales stack up Ethereum

Ether, the second-largest cryptocurrency by market cap, is trading above $3,500 after defending the $3,300 low on Wednesday. The coin is still down 1.5% in the last 24 hours, but could rally higher in the near term.

The positive performance comes as a key Ethereum whale has added over $1.38 billion worth of Ether coins to their wallet over the last ten days. According to Arkham Intelligence, the whale added another million in ETH to its holdings, while also borrowing $270 million from the decentralized lending platform Aave to potentially expand its ETH position.

The whale now holds 228.39K ETH in loaned positions worth about $818.6 million and 157.32K ETH in direct spot holdings worth $563.8 million. A few other onchain platforms also reveal similar bullish sentiment among Ethereum whales. 

Ether eyes $3,900 despite choppy market conditions

The ETH/USD 4-hour chart is bearish and efficient as Ether is down 1.5% in the last 24 hours. The cryptocurrency saw over $153 million in liquidations in the last 48 hours, led by $122.8 million in long liquidations.

The bearish performance comes after Ether faced a rejection at the 200-day Exponential Moving Average (EMA), just below the $3,660 resistance, on Wednesday. It dropped to the $3,470 support level but has now bounced back and is trading above $3,500 per coin. 

If ETH sustains its recovery above $3,470, it could rally higher and hit the $3,900 mark. However, the resistance level at $3,660 will provide a challenge in the near term. On the flip side, failure to surpass the $3,660 resistance level could see ETH retest $3,470, with another support level just around $3,100.

The Relative Strength Index (RSI) stands at 51, showing a fading bearish trend. The MACD line is also below the neutral zone, but could crossover into the bullish region if the recovery continues.

• Dogecoin price fell to near $0.17 as fresh downside pressure hit cryptocurrencies.
• The memecoin has nonetheless bounced off these intraday lows and is inching towards $0.18.
• What’s next for cryptocurrency amid DOGE ETF anticipation?

Dogecoin (DOGE) price dropped from highs of $0.18 as Bitcoin and top altcoins pared gains following an uptick on Monday.

However, bulls are showing resilience as prices bounce off lows near $0.17, with the top memecoin recording a dip in selling pressure.

As of November 12, 2025, the DOGE token is trading at $0.176, which is a slight uptick from its intraday lows of $0.1712.

While the asset remains in negative territory on the day, it’s up nearly 9% over the past week.

Notably, the bounce and renewed interest from bullish traders across the market suggest Dogecoin could be poised for potential continuation higher.

Dogecoin price technical outlook

The $0.15 price level is a support zone that has held firm since March 2025, and features key reload areas that coincide with recent market sell-offs.

In October, bears touched lows below the mark, and traders see it as a key psychological and technical floor.

By thwarting bears’ plans for deeper corrections throughout the past several months, the buffer zone has helped bulls to remain in the game.

DOGE above $0.17 aligns with technical indicators, including a hidden bullish divergence on the Relative Strength Index (RSI) that suggests that selling pressure may be waning.

Investors are digesting broader market dynamics, including macroeconomic tailwinds like the end to the US government shutdown and monetary policy.

In this environment, Dogecoin’s resilience at $0.17 points to strength at an entrenched position.

If price bounces off the lower boundary of a multi-month broadening wedge, a breakout above the $0.18 resistance is likely.

That could pave the way for a retest of the $0.20 mark. Notably, the 50-day exponential moving average provides downsloping resistance near $0.199.

A break above this will bring $0.22 and $0.30 into play.

Why is Dogecoin price largely bullish?

Dogecoin’s bullish price outlook rides a confluence of catalysts, including institutional developments, community resilience, and favorable technical setups.

Even as short-term bearish signals linger, mounting anticipation around spot Dogecoin exchange-traded funds is significant.

XRP, Solana, Litecoin, and Dogecoin are among the top altcoins set to benefit from ETF launches. The Bitwise DOGE ETF countdown is on, as CoinJournal highlighted earlier this month.

Meanwhile, on-chain activity, shown by large wallet investors adding to their holdings amid the price dip and memecoin hype, continues to bolster bulls.

As noted, the 50-day exponential moving average, though declining, has previously acted as a robust support level.

Key takeaways

• SOL is trading above $160 after testing the $150 low on Tuesday.
• The coin could rally towards the $200 level soon amid growing demand and low supply.

SOL recovers from Tuesday’s slump

Solana’s derivatives market has not fully recovered since the October 10 deleveraging event, which liquidated over $19 billion in crypto assets within 24 hours. Data obtained from CoinGlass showed that the futures Open Interest (OI) averaged $17.63 billion on Wednesday, up from the $7.7 billion recorded on Tuesday. 

The growing OI, representing the national value of outstanding futures contracts, suggests that retail investors are regaining interest in the cryptocurrency. A steady recovery in the OI will indicate a short-term bullish outlook. Otherwise, Solana’s recovery potential could remain limited.

Solana bulls eye short-term breakout

The SOL/USD daily chart remains bearish and inefficient as Solana has failed to break above the $200 psychological level in the near term. SOL is trading at $160 per coin at the moment as the broader crypto market recovers from the recent slump. 

The Relative Strength Index (RSI) on the daily chart holds at 40, signaling a fading bearish trend. If the RSI moves above the neutral 50, SOL could rally higher towards the $188 resistance level in the near term. An extended bullish run would see SOL hit $200 for the first time since October 25th. 

However, if the downtrend continues to dominate, SOL could drop below the $150 support level and retest the recent low of $144. 

Conversely, the Moving Average Convergence Divergence (MACD) indicator on the daily chart is set to trigger a buy signal. This signal usually takes place once the blue line crosses and settles above the red signal line, encouraging investors to increase their risk exposure. 

SOL could experience a 22% breakout from its current level, allowing it to hit the $200 psychological level.

• SBI Crypto was breached, losing $21 million in assets via a suspected laundering operation.
• A phishing scam targeting GMGN tricked 107 users into approving fake transactions.
• Honeypot token scams rose 600% month-on-month, with over 2,100 tokens detected.

Web3 has entered a new phase of cyber threats, with attackers now leveraging artificial intelligence, automation tools, and complex social engineering to exploit users across decentralised networks.

According to GoPlus Security, over $45.84 million was lost in October alone from a surge of scams, phishing attacks, token exploits, and wallet hacks.

The data reveals how scammers are evolving their methods, creating high-impact exploits that have affected thousands of users and platforms across Ethereum, Binance Smart Chain, and Base.

Hackers use AI and automation to boost phishing campaigns

GoPlus observed a sharp increase in phishing attacks that led to more than $3.5 million in losses.

A growing number of these scams are powered by “Phishing-as-a-Service” platforms, where threat actors use AI tools to rapidly generate fake websites and deploy large-scale campaigns with lower operational costs.

One of the largest phishing cases involved the trading platform GMGN.

In this incident, 107 users were misled by a fake third-party website into authorising harmful transactions. Losses totalled more than $700,000.

The phishing scam replicated legitimate wallet interactions, tricking victims into signing approval requests that gave attackers control over their funds.

In another case, a trader approved a malicious “increaseAllowance” command, resulting in a $325,000 loss in Coinbase Wrapped Bitcoin.

Separately, another user was hit with a $440,000 loss after signing a fraudulent “permit” transaction.

Both exploits highlight the rise in fake contract approvals, often enabled by deceptive interfaces mimicking trusted apps.

Sophisticated exploits linked to state-style laundering tactics

The single largest exploit came from SBI Crypto, which suffered a breach that drained $21 million worth of digital assets. The losses included Bitcoin, Ethereum, Litecoin, Dogecoin, and Bitcoin Cash.

Although SBI Crypto did not officially confirm the source of the breach, a joint investigation by ZachXBT and Cyvers suggested patterns similar to those used by North Korean hacker groups.

The attackers allegedly funnelled funds through Tornado Cash, a known crypto mixer previously sanctioned for its role in laundering state-sponsored thefts.

This laundering method closely mirrors activity linked to the Lazarus Group, though the report stressed that the connection remains unverified.

Web3 platforms under attack from honeypot tokens

Alongside phishing and exploits, the report found a dramatic spike in honeypot tokens.

These are malicious smart contracts that allow users to buy tokens but prevent them from selling or withdrawing funds.

Honeypot tokens surged 600% last month, reaching 2,189 identified tokens—though still far fewer than the 40,000 recorded in June 2025.

The Binance Smart Chain accounted for the bulk of these tokens at 1,780, followed by 216 on Ethereum and 131 on Base.

These tokens are embedded with hidden restrictions that block transactions, stranding investor funds in illiquid assets.

Their increase underscores a shift toward embedded contract-level fraud, which can bypass basic security tools.

Tokens and socials compromised in wider exploits

The wider ecosystem also saw losses from social media and platform-based breaches.

Astra Nova’s official social account was hijacked, triggering a large-scale sell-off of its native token RVV and causing losses of approximately $10.3 million.

In a separate exploit, decentralised finance platform Garden Finance was hit with a vulnerability that cost users around $10.8 million, according to ZachXBT.

These incidents reflect a widening surface of attack across both user-facing interfaces and backend contract code.

• The Lisk (LSK) token has surged 62% amid altcoin rotation and ecosystem growth.
• The key support lies at $0.2574, while the immediate resistance lies between $0.3372 and $0.4591.
• The breakout has coincided with a dramatic surge in Lisk open interest.

Lisk (LSK) has captured the attention of crypto investors today as the token experienced a remarkable 62.6% surge in just 24 hours.

The sudden rally has pushed LSK to new short-term highs, outpacing a broadly flat cryptocurrency market.

Analysts are pointing to a combination of technical triggers, ecosystem developments, and market rotation that are fueling renewed optimism in the once-sleepy token.

Explosive breakout drives market attention

Lisk (LSK) has broken out of a descending wedge pattern that had constrained its price since July.

In a single trading session, the token rocketed from $0.18 to an intraday high of $0.42, generating significant trading volumes.

The breakout coincided with a dramatic 258% surge in open interest, with $38.9 million added in just four hours.

However, a slightly negative funding rate of -1.96% intensified short liquidations, triggering $1.6 million worth of forced exits across major derivatives markets.

Market rotation and ecosystem growth

The LSK rally is also closely tied to broader market dynamics, where Bitcoin dominance has fallen to 59.3%, signalling a rotation of capital into high-growth altcoins.

Lisk (LSK) benefited from this flow, seeing its 24-hour trading volume surge by over 5,500% to $237 million.

Investors appear to be favouring LSK as a promising, undervalued token amid muted Bitcoin volatility.

Further bolstering sentiment, Lisk’s ecosystem has shown meaningful development with the launch of a $15 million EMpower Fund supporting Web3 startups across Africa, LATAM, and Asia, while DeFi integrations like Gearbox Protocol have expanded LSK’s lending and borrowing utilities.

The Lisk Network has also migrated to the Optimism Superchain, bringing its app ecosystem in line with other OP stack chains like Base.

These developments enhance Lisk’s credibility and long-term growth prospects, attracting speculative capital and encouraging active trading in the short term.

Lisk (LSK) token price outlook

The LSK token has demonstrated a remarkable ability to rebound even after extended periods of decline, and recent developments in Web3 applications and derivatives trading have reignited investor interest.

A blend of technical momentum, ecosystem growth, and capital rotation into altcoins underpins a cautiously optimistic outlook for Lisk (LSK) in the near term.

If the Lisk price can maintain levels above $0.32, the token may target the $0.42–$0.45 range, signalling continued bullish momentum.

However, traders should remain vigilant, as sharp rallies like this often experience short-term retracements, especially seeing that the RSI is already in the oversold region.

The key levels around $0.345 and $0.402 will be crucial in shaping market sentiment, and sustained trading volumes above $200 million per day would further reinforce the breakout.

From a technical perspective, LSK needs to stay above $0.2574 to support its upward trajectory.

Breaking through the first major resistance at $0.3372 could pave the way toward $0.4591, with a potential third resistance level at $0.5629 if bullish conditions persist.

But on the downside, a breach below $0.2574 may expose the token to a deeper correction, with the next support level at $0.1891 serving as a critical floor for buyers, according to CoinLore.

Overall, the Lisk (LSK) token price reflects a delicate balance between renewed optimism and short-term caution.