Hyperliquid (HYPE) traded above $58 on Wednesday, extending its recovery into a second consecutive session as buyers targeted a breakout above the psychologically significant $60 level.

The decentralized exchange's native token maintained a broadly bullish technical structure above its major moving averages, while momentum indicators continued to improve without suggesting that the rally had become excessively stretched.

The advance coincided with a policy push: the Hyperliquid Policy Center and trade[XYZ] are urging the US Securities and Exchange Commission (SEC) 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 on modernizing the Initial Public Offering (IPO) process. Comment letters are a standard channel through which the public can input into SEC policy reviews, though they do not commit the agency to any action, so the filing opens a regulatory conversation rather than guaranteeing a path to approval.

The letter highlighted the pricing history of at least five trade[XYZ] pre-IPO perpetual (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, and they outlined the 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, with prices updating continuously based on market demand — potentially offering investors and issuers an early indication of expected listing value. The structure builds on perpetual futures, expiry-free derivative contracts that have become among the most heavily traded instruments in the digital-asset sector.

An IPOP, however, is not equivalent to owning pre-IPO equity. Contract holders receive no actual shares, allocation rights, or voting power, and they hold 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 currently unable to access price opportunities available to traders in other jurisdictions. It cited SpaceX as an example, noting that the company's pre-IPO perpetual market was priced at $135 before it listed at $150. According to the organization, the market provided a visible pricing signal, but US investors had no regulated way to trade it. In conventional US markets, pre-listing share transactions take place largely in private secondary markets where participation is generally restricted to accredited investors, leaving most retail traders without a regulated route to pre-listing price exposure.

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, although the products could expose retail traders to substantial risks, including leverage, uncertain valuation, limited disclosure, and price manipulation before public-market data becomes available. The submission also adds to a growing volume of comment letters and policy proposals from digital-asset firms seeking clarity on how crypto-based market infrastructure can fit within US securities rules.

HYPE holds bullish structure above major EMAs

HYPE traded at approximately $58.73, retaining a constructive technical outlook. The token remained above its 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs) — a bullish alignment that places all three indicators below the current price and provides several potential layers of support.

The Moving Average Convergence Divergence (MACD) indicator has moved firmly into positive territory, signaling strengthening upside momentum. Meanwhile, the Relative Strength Index (RSI) stood near 56, a reading that indicates steady buying pressure while remaining 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, while 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, although HYPE still requires a confirmed trendline breakout to strengthen its broader bullish outlook.