Opinion: The HYPE technicals are pointing toward a target above $100, breaking through the classic bull flag pattern

BlockBeats News, June 1 — Hyperliquid's native token HYPE has increased by over 30% in the past five days, with the price once breaking through $74 and hitting a new all-time high. Analysis indicates that HYPE has broken out of the classic bull pennant pattern, with an upward target potentially pointing to $105, leaving about 45% room for further growth from the current price.

Technical analysis shows that after a rapid rise in late May, HYPE formed a flagpole structure, then consolidated within a triangle range, and recently experienced a volume breakout above the upper trendline. Based on the bull pennant pattern, its theoretical target price is approximately $105.3, which could be achieved between June and July.

Derivatives market data also signals a bullish outlook. Data shows that Hyperliquid's open interest has risen to a record high of $3.5 billion, a significant increase from about $1.4 billion at the start of the year. Meanwhile, funding rates have remained positive, indicating that the overall market sentiment remains bullish.

Since May 20, HYPE's total short liquidations have reached approximately $126 million, significantly higher than the $68.85 million in long liquidations, showing a clear "short squeeze" effect during the price rally. If the upward trend continues, it could further trigger short covering and accelerate the price increase.

Fundamentally, according to DefiLlama data, Hyperliquid's application revenue over the past 30 days reached $57.9 million, surpassing Ethereum and becoming the second-largest blockchain revenue network after Solana. Its protocol allocates 99% of fee income to the "Assistance Fund" for buybacks of HYPE on the open market, which is viewed as an important mechanism to support the token's value.

Additionally, the U.S. Commodity Futures Trading Commission (CFTC) recently publicly recognized the role of perpetual contracts in price discovery and risk management, which is a positive signal for Hyperliquid, whose core business revolves around perpetual contract trading. Meanwhile, the HYPE ETF launched in the U.S. has attracted about $122 million in net inflows since its listing on May 12, indicating growing institutional investor demand for HYPE exposure.