Hyperliquid’s HYPE token surged to a record high as ETF inflows and a growing short squeeze pushed bullish targets above $100.
Hyperliquid News
Hyperliquid (HYPE) rose more than 30% over five days to a record near $74. A chart breakout now points to a possible move above $100. The token has entered price discovery.
Bull Pennant Points to $105 Target
The rally completed a bull pennant. A sharp advance in late May formed the pattern's flagpole, followed by a brief pause inside a symmetrical triangle. During that pause, HYPE printed lower highs and higher lows as the range tightened.
Bull pennants usually resolve when price clears the upper trend line. Traders measure the target by adding the flagpole's height to the breakout point. Ahead of June 1, HYPE pushed above the triangle's upper boundary on rising volume, lifting the measured target to about $105.30 by June or July, roughly 45% above current levels.
Momentum looks stretched. The relative strength index sat above 77 on June 1, in overbought territory. A pullback toward the 20-day exponential moving average near $58.32 is possible, and a clear break below it would weaken the setup.
Futures Data Leans Bullish
Open interest on Hyperliquid reached a record $3.5 billion, up from about $1.41 billion at the start of the year, according to Coinglass. The open interest-weighted funding rate stood near 0.0050% every eight hours on June 1 and has remained positive throughout most of the rally, meaning long traders are paying shorts to hold their positions.
Short sellers absorbed the larger losses. Since May 20, HYPE recorded about $126.28 million in short liquidations against $68.85 million in long liquidations, according to Coinglass. The gap points to a short squeeze, and further gains could force more buybacks toward the $100 to $105 zone.
Hyperliquid passed Ethereum (ETH) to become the second-largest blockchain by app revenue on a 30-day rolling basis, generating $57.9 million, according to DefiLlama. The chain routes 99% of its protocol fees to its Assistance Fund, which buys HYPE on the open market.
On May 29, the CFTC described perpetual futures as useful for price discovery and risk management. HYPE has gained about 25% since that update. US-listed HYPE funds from Bitwise and 21Shares have drawn a combined $122.2 million in net assets since their May 12 debut, according to SoSoValue.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
