Hyperliquid’s native token HYPE has surged more than 40% over the past seven days, fueled by aggressive institutional accumulation, fresh all-time highs in derivatives activity, and a major technical breakout that has traders eyeing another leg higher.
Summary
- Hyperliquid price has surged more than 40% over the past week, supported by ETF inflows, protocol buybacks, and rising perpetual futures activity.
- CoinGlass liquidation data showed heavy short liquidation clusters between $65 and $66.7, raising the possibility of a fresh squeeze if bulls break higher.
- Whale activity intensified during the rally, with trader Garrett Jin accumulating over $9 million in HYPE while other large holders placed sell orders near the $70 region.
According to data from crypto.news, Hyperliquid (HYPE) climbed from around $45 last week to an intraday high near $64 on May 25 before consolidating around the $63 region at press time. The move came even as Bitcoin struggled to decisively reclaim the $110,000 level and several large-cap altcoins traded sideways amid renewed macro uncertainty tied to U.S. Treasury yields and Federal Reserve rate expectations.
Institutional catalysts have played a central role in the rally. Earlier this month, both the 21Shares Hyperliquid ETF and Bitwise’s Hyperliquid ETF debuted on U.S. exchanges, opening direct institutional access to HYPE exposure. Combined inflows into the two products reportedly surpassed $53 million during their opening sessions, adding significant spot demand pressure to an already supply-constrained market.
Adding to the bullish narrative, Bitwise disclosed that it would allocate 10% of ETF management fees toward purchasing and holding HYPE tokens on its balance sheet. Traders interpreted the move as an early sign that asset managers may begin treating HYPE as a strategic treasury asset rather than merely a speculative trading token.
Meanwhile, the protocol’s structural partnership with Coinbase and Circle under the AQAv2 framework strengthened the long-term revenue outlook for Hyperliquid’s ecosystem.
Coinbase agreed to route a large share of reserve-yield revenues generated from USDC deployed on Hyperliquid back into the protocol, while Circle committed to staking 500,000 HYPE tokens to support liquidity infrastructure on the network.
Protocol fundamentals have accelerated alongside the price rally. Hyperliquid’s perpetual futures platform recently crossed record volumes in synthetic commodities, binary prediction contracts, and pre-IPO trading markets, sharply boosting fee generation. Forbes previously noted that between 97% and 99% of all trading fees generated on Hyperliquid are redirected toward automatic HYPE buybacks through its on-chain Assistance Fund.
As trading activity intensified, the protocol’s buyback engine continuously purchased HYPE tokens at block intervals, creating a feedback loop between rising volumes and spot demand. Traders increasingly view the model as one of the most aggressive deflationary mechanisms currently operating within crypto markets.
Whale activity has added another layer of volatility to the recent move. According to blockchain tracking platform Lookonchain, trader Garrett Jin accumulated 145,050 HYPE worth roughly $9.05 million over the past four days and simultaneously placed a TWAP order to acquire an additional 39,940 HYPE valued near $2.44 million.
At the same time, not all large holders are positioning for further upside.
The positioning suggests some whales are beginning to distribute into strength as HYPE price approaches psychologically important resistance zones.
Can Hyperliquid’s technical breakout trigger another rally?
On the daily chart, HYPE appears to have completed a powerful breakout from a multi-month ascending channel formation that had capped price action since February.
After consolidating near the upper trendline throughout April and early May, bulls forced a vertical breakout above channel resistance near $50, triggering an accelerated momentum move toward the current $64 region. The breakout also invalidated previous bearish divergence concerns that had emerged earlier this quarter.
The 50-day moving average currently sits near $44 while the 200-day moving average remains around $34.5, highlighting the strength of the ongoing trend structure. HYPE continues to trade substantially above both key support levels, a setup that typically signals strong bullish continuation conditions.
Momentum indicators have also turned decisively bullish. On the daily timeframe, the MACD histogram remains deeply positive while the MACD line continues expanding above its signal line after a strong crossover earlier this month. Expanding histogram bars suggest buying momentum has not yet fully exhausted itself despite the steep rally.
Derivatives positioning also points toward elevated volatility ahead. According to CoinGlass liquidation heatmaps, large leveraged short liquidation clusters are concentrated between $65 and $66.7. A decisive breakthrough in this region could trigger forced liquidations from overleveraged bears, potentially accelerating upside momentum in a short squeeze scenario.
Beneath current prices, notable liquidity pockets have formed near $61 and $60.5, creating important short-term support zones in the event of profit-taking pressure. Heavy leverage concentration around these levels suggests bulls will likely attempt to defend them aggressively during pullbacks.
Funding rates across major exchanges have remained positive but have not yet reached the overheated extremes typically associated with local cycle tops. Open interest, however, has climbed sharply alongside price, indicating new leveraged positions continue entering the market rather than traders merely closing shorts.
Market analyst Altcoin Sherpa noted on X that HYPE remains “one of the strongest trend structures in crypto right now,” adding that momentum traders will likely continue buying dips unless Bitcoin experiences a sharp macro-driven correction.
What risks could slow the HYPE rally?
Despite the strong trend, several macro and market risks could disrupt the rally over the coming sessions.
Federal Reserve policy expectations remain a major variable for speculative assets. Recent U.S. economic data showed inflation pressures stabilizing more slowly than expected, pushing Treasury yields higher and reducing expectations for immediate rate cuts. Higher yields have historically pressured risk assets, particularly highly leveraged crypto trades.
Oil markets also remain volatile amid ongoing geopolitical tensions surrounding Iran and shipping flows through the Strait of Hormuz. Sudden spikes in crude prices could weaken overall market risk appetite, even though Hyperliquid has benefited from increased commodities trading activity tied to these same tensions.
Profit-taking pressure from whales may also intensify near the $65 to $70 region, particularly as traders begin locking in gains after HYPE’s nearly uninterrupted multi-week advance. Large limit sell walls identified by on-chain trackers could temporarily cap upside momentum unless fresh spot demand absorbs the supply.
Still, structural demand drivers continue supporting the bullish case. ETF inflows, automatic protocol buybacks, expanding derivatives volume, and institutional integrations have combined to create one of the strongest narrative setups currently present in the altcoin market.
If bulls successfully clear the $66.7 liquidation cluster in the near term, the next major psychological resistance sits near $70, followed by a potential extension toward the mid-$70 range. Failure to hold above the $60 support zone, however, could expose HYPE to a deeper retracement toward the breakout region near $50, where previous channel resistance may now act as support.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
