Hyperliquid’s native token, HYPE, has rallied more than 30% in five days to a record high near $74, with a bullish chart breakout now pointing to a potential move above $100.
HYPE/USD daily chart. Source: TradingView
Key takeaways:
- HYPE has broken out of a bull pennant pattern, putting its measured upside target near $105.
- Hyperliquid has become the second-largest blockchain by app revenue on a 30-day rolling basis.
HYPE bull pennant hints at rally toward $105
Hyperliquid’s rally may have further room to run after HYPE broke out of a textbook bull pennant pattern.
The setup developed after HYPE’s sharp late-May rally formed the pattern’s “flagpole,” followed by a brief consolidation inside a symmetrical triangle. During this pause, the token printed lower highs and higher lows, showing tightening volatility before the next directional move.
HYPE/USD daily chart. Source: TradingView
In technical analysis, bull pennants typically resolve when the price breaks above the upper trend line. Traders then estimate the upside target by adding the flagpole’s height to the breakout point.
Over the weekend, HYPE moved above the triangle’s upper boundary on rising volume, suggesting stronger conviction behind the breakout. If the pattern plays out as intended, the price could climb toward its measured target near $105.30 by June or July, about 45% above current levels.
However, momentum is becoming stretched. HYPE’s relative strength index was above 77 on Monday, placing it in overbought territory and raising the odds of a brief consolidation or correction.
If profit-taking accelerates, HYPE could retest its 20-day exponential moving average near $58.32 in June. A decisive break below that level would weaken the bullish setup and risk invalidating the pennant breakout.
Hyperliquid futures show a strong bullish bias
Derivatives market data adds another bullish layer to HYPE’s technical breakout.
Hyperliquid’s open interest has climbed to a record $3.5 billion, up from about $1.41 billion at the beginning of the year, according to Coinglass data. The sharp rise shows that more leveraged capital is entering HYPE markets as it pushes into price discovery.
Hyperliquid open interest. Source: CoinGlass
HYPE’s open interest-weighted funding rate stood near 0.0050% every eight hours as of Monday and has remained positive through most of the latest rally.
Hyperliquid OI-weighted funding rates. Source: CoinGlass
That means long traders have been paying short traders to keep their perpetual futures positions open, a sign that leveraged demand has leaned bullish. While not extreme, the consistently positive funding rate points to a clear upside bias in HYPE’s derivatives market.
Meanwhile, short sellers have taken the bigger hit during the latest rally.
Since May 20, HYPE has seen about $126.28 million in short liquidations, compared with $68.85 million in long liquidations.
Hyperliquid total liquidation chart. Source: CoinGlass
That imbalance suggests bearish traders have been forced to close positions as the price moved higher, creating a “short squeeze.”
Further gains in HYPE could put more shorts at risk of liquidation, forcing more buybacks and potentially accelerating the move toward the $100–$105 target zone.
Hyperliquid surpasses Ethereum in monthly app revenue
HYPE fundamentals are also leaning bullish.
Hyperliquid has overtaken Ethereum to become the second-largest blockchain by app revenue on a 30-day rolling basis, generating $57.9 million, according to DefiLlama.
Top revenue-generating protocols. Source: DefiLlama
The chain routes 99% of its protocol fees to its Assistance Fund, which buys HYPE on the open market. That buyback mechanism has become a core part of the bullish investment case for the token, as higher trading activity can lead to stronger recurring demand for HYPE.
The broader backdrop for perpetual futures has also improved.
On Friday, the CFTC recognized perps as useful tools for price discovery and risk management, helping legitimize the market that sits at the center of Hyperliquid’s business model, even if the protocol is not a direct beneficiary.
HYPE has rallied roughly 25% since the CFTC update.
Related: Hyperliquid launches prediction markets for real-world events
The launch of US-listed HYPE exchange-traded funds (ETF) may also help fuel the rally.
US Spot HYPE ETF net flows. Source: SoSoValue
Since their May 12 debut, HYPE funds from Bitwise and 21Shares have attracted a combined $122.2 million in net assets, according to SoSoValue, pointing to early institutional demand for exposure to the digital token.
