Nasdaq-listed biotech innovator Sonnet BioTherapeutics announced the creation of a dedicated Hyperliquid (HYPE) digital asset treasury via a strategic business combination with Rorschach.

Sonnet BioTherapeutics secures strategic listing on Nasdaq, establishing a foundation for its cryptocurrency treasury initiative.

Hyperliquid Strategies Inc., the resulting entity, is positioned to hold a substantial 12.6 million HYPE tokens alongside a noteworthy $305 million treasury of cash.

The primary objective of this capital allocation strategy is to acquire further HYPE tokens in secondary markets.

Technical Snapshot: Price Action Challenges $50 Resistance

HYPE experienced downward pressure following the announcement yet held significant ground above major psychological levels.

The daily chart highlights an encouraging scenario: buyers, though initially overwhelmed, have retained significant control in the multi-day correction. Key bullish catalysts include an upward trajectory for moving averages and an RSI approaching the overbought zone, despite resistance near the $50 level.

Crucially, a recovery attempt to reclaim $45.80 would mark a decisive shift, effectively establishing this level as dynamic support and increasing the probability of a sustained attempt to breach the prominent $50 resistance barrier.

The potential upside targets following a successful $50 breach include the $60 resistance area.

The continuation of the bullish case, however, requires navigating potential counter-actions near the shorter-term average (20-day EMA at $42.93). A breakdown below this level would weaken the upside trajectory.

Further escalation in bearish momentum, should the price extend towards the longer-term average (50-day SMA at $38.86), could trigger a deeper correction towards $41.

Short-Term Battlefields: 20-EMA and SMA Levels

The immediate four-hour chart emphasizes the critical juncture near the 20-day Exponential Moving Average (EMA), currently at $42.93.

Rising to challenge the five-day NASDAQ basis, the technical dialogue suggests that price action in the immediate term isn’t offering a clear edge to either buyers or sellers.

However, decisive buyers stand ready to capitalize on a relaunch above the longstanding $50 psychological hurdle, potentially extending the structure towards the $60 handle.

Coincidentally, the 4-hour chart also features the 50-day Simple Moving Average ($38.86) as a significant sub-target if short-term bearish control is ultimately re-established. A failure to reach $45.80 short-term might see the path wider open downwards.