HYPE Token Soars 280% as Supply Dwindles and Whales Bet Big

HYPE jumps 280% from May lows as whales leverage long positions and supply shrinks with annual buybacks tightening liquidity.

Reduced ready-for-sale volume and exhausted unstaker exits strengthen HYPE’s bullish setup as demand outpaces circulating supply.

Technicals show bullish consolidation between $32–$35 with Ichimoku support, suggesting potential breakout if resistance breaks.

HYPE has staged a powerful comeback, surging nearly 280% from May lows after a sharp multi-month decline. A key whale recently bought 110,824 HYPE for $3.99 million at an average price of $36. The investor added a 4x leveraged long, signaling bullish conviction. HYPE now trades around $34.65, up 1.46% in the latest session. Despite recent selling pressure, supply constraints and whale activity suggest continued upside potential.

Supply Drops as Demand Accelerates

The HYPE token’s price showed volatility from December 2024 through early June 2025. It started near $28, fluctuated through January and February, and then declined in March. Prices dropped to $10 by May, marking a 65% correction. However, a strong recovery followed. By June, HYPE hit highs above $38, marking its strongest rally of the period.

Source: Arthur

Ready-for-sale volumes displayed an inverse relationship to price. These volumes dropped from 150 million tokens in December to about 103 million in late May. This contraction aligned with the price bottom, reinforcing the impact of reduced token availability. Besides, the project’s assistance fund is actively buying back around 21% of the supply annually

Market liquidity remains tight. Moreover, many early holders have already exited positions. Analysts suggest that unstakers who intended to sell have mostly done so. This clears room for bullish continuation as token supply stays compressed.

Technical Setup Suggests Breakout Potential

On the Hyperliquid/USDT pair, prices rallied from $25 to nearly $40 between May 10 and June 2. The sharp rise broke several resistance levels. Currently, HYPE consolidates between $32 and $35 in a rectangular range. This setup shows temporary indecision among traders after the explosive move.

Source: Neil

The Ichimoku cloud remains bullish, with prices staying above it. Trendlines confirm the broader upward path. Volume increased during the rally, showing strong participation.

Additionally, consolidation often leads to sharp continuation moves. If HYPE breaks above $35 decisively, another leg higher could unfold quickly. However, traders are watching closely, as consolidation near highs can also lead to reversals.

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