Hypeliquid’s HYPE Breakout puts a $100 price tag on Play
HyperLiquid's native token HYPE rallied more than 30% in five days to a record high of nearly $74, indicating a bullish chart breakout could now top $100.
HYPE/USD Daily Chart. Source: TradingView
Main Receptors:
HYPE broke out of a bull pennant pattern, placing its measured target near $105.Hyperliquid became the second largest blockchain by app revenue on a 30-day rolling basis.
HYPE has hinted at a bull pennant rally to $105
After HYPE breaks out of the textbook bull pennant pattern, the hyperliquid rally may have more room to run.
The setup was created after a HYPE peaceful end-of-May rally that formed the “flag” of the pattern, followed by a brief consolidation in a congruent triangle. During this pause, the token posted lower highs and higher lows, indicating some volatility ahead of the next directional move.
HYPE/USD Daily Chart. Source: TradingView
In technical analysis, bull pennants usually resolve when the price breaks above the upper trend line. Traders then estimate the upside target by adding the height of the flagpole to the opening point.
Over the weekend, HYPE moved above the upper boundary of the triangle with increasing volume, indicating stronger confidence behind the crash. If the pattern holds, the price could rise to a target of around $105.30 in June or July, a 45% upside from current levels.
However, the pace is picking up. The HYPE Relative Strength Index was above 77 on Monday, placing it in overbought territory and raising the possibility of a short consolidation or correction.
If profit-taking accelerates, HYPE could test the 20-day EMA at $58.32 in June. A critical break below that level weakens the knee position and may invalidate the pennant fracture.
High liquidity futures indicate strong bullishness
Derivatives market data adds another layer of gloss to the HYPE technical breakdown.
Hyperliquid's open interest rose to $3.5 billion from $1.41 billion at the start of the year, Coinglass data shows. The spike shows that more leveraged capital is moving into HYPE markets as they push for price discovery.
High liquid open demand. Source: CoinGlass
HYPE's open interest weighted support has been around 0.0050% every eight hours and has remained positive through most of the recent rally.
Hyperliquid OI-weighted funding rates. Source: CoinGlass
That is, long traders were paying short traders to open their long-term futures positions, which is a sign that demand is turning bullish. While not extreme, consistent positive funding shows a clear bias in the HYPE derivatives market.
Meanwhile, short sellers took the biggest hit in the last rally.
As of May 20, HYPE has seen about $126.28 million in short liquidity, compared to $68.85 million in long liquidity.
High Liquidity Total Liquidity Chart. Source: CoinGlass
That imbalance shows that loaded traders are forced to close positions as prices move higher, creating a “short squeeze.”
Further gains in HYPE could put more shorts at risk of liquidity, potentially forcing further buying and accelerating the move to the $100-$105 target zone.
Hyperliquid has surpassed Ethereum in monthly app revenue
HIP basics are also tricky.
HyperLiquid surpassed Ethereum to become the second-largest blockchain by app revenue, generating $57.9 million, based on a 30-day roll.
Top earning protocols. Source: Defillama
The chain delivers 99% of protocol fees to the Assistance Fund, which buys HYPE on the open market. That return mechanism has become an integral part of bullish investing, as high trading activity leads to repeated demand for HYPE.
The broad background for eternal future possibilities is also improved.
On Friday, the CFTC recognized PURPs as valuable tools for price discovery and risk management, helping to legitimize the market at the center of the hyperliquid trading model, even though the protocol is not a direct beneficiary.
HYPE rallied about 25% after the CFTC update.
Related: Hyperliquid launches prediction markets for real-world events
The launch of the US-listed HYPE Exchange-Traded Fund (ETF) could help fuel the rally.
US Spot HYPE ETF Net Flows. Source: SoSoValue
As of May 12, HYPE funds from Bitwise and 21Shares have attracted a combined $122.2 million in net assets, according to SoSoValue, indicating early institutional interest in digital token exposure.
