Hyperliquid hits record high as HYPE breakout puts $105 in focus

Hyperliquid’s HYPE token has reached a new all-time high above $73 as a number of upside catalysts have strengthened expectations for further gains.

According to data from Coingecko, HYPE climbed to $73.73 on June 1, extending a rally that has pushed the token up more than 70% over the past month and into price discovery territory.

The rally has stood out at a time when Bitcoin and Ethereum remain below their respective record highs.

Why is HYPE price going up?

Fresh buying interest has arrived from several directions.

Among the most notable developments, the Commodity Futures Trading Commission approved the first federally regulated Bitcoin perpetual futures contract through Kalshi last week

While the decision does not directly apply to Hyperliquid, traders have viewed it as a positive signal for the perpetual futures market that sits at the center of Hyperliquid's ecosystem.

Investor interest has also been supported by Hyperliquid's expansion beyond derivatives trading

The protocol recently launched native prediction markets that allow users to trade contracts linked to economic events such as inflation releases and central bank decisions, keeping more activity within its own network.

Institutional demand has continued to build alongside those developments.

Spot Hyperliquid exchange-traded funds absorbed more than 1% of HYPE's market capitalization within weeks of launch, outperforming the early market-cap-adjusted adoption pace of spot Bitcoin, Ethereum, and Solana ETFs.

Additional data from SoSoValue showed that HYPE funds launched by Bitwise and 21Shares had accumulated a combined $122.2 million in net assets since their May 12 debut

Bloomberg ETF analyst Eric Balchunas recently noted that the 21Shares Hyperliquid ETF, THYP, gained roughly 50% within its first two weeks of trading.

Large investors have also increased exposure. Market disclosures showed an a16z-linked wallet accumulated approximately $192 million worth of HYPE

Meanwhile, recent regulatory filings have revealed that Goldman Sachs has exposure to Hyperliquid-related investment strategies, reinforcing the view among market participants that the project is attracting attention beyond the crypto-native sector.

One of the strongest sources of demand remains Hyperliquid's buyback mechanism.

According to DefiLlama, the protocol has generated more than $1.18 billion in cumulative revenue since launch

Approximately 98% to 99% of protocol fees are directed to the Assistance Fund, which purchases HYPE on the open market, removing roughly 14% of circulating supply from active trading.

At the same time, DefiLlama data shows Hyperliquid generated $57.9 million in application revenue over a rolling 30-day period, allowing it to surpass Ethereum and become the second-largest blockchain by app revenue during that timeframe.

HYPE price analysis

Technical indicators continue to point to strong momentum, although some measures suggest the rally has become increasingly extended.

On the daily chart, HYPE has broken above a multi-week bull pennant formation, a pattern that often appears after a strong upward move and consolidation phase.

HYPE/USDT - 1-day price chart. Source: TradingView.

Technical analysis commonly estimates the upside target by measuring the height of the preceding advance and projecting it from the breakout point.

Based on that framework, the breakout opens a path toward roughly $105.30, placing the next major target about 45% above current levels if buying pressure remains intact.

Momentum indicators continue to support the bullish structure.

The daily MACD remains firmly in positive territory, with the MACD line holding above the signal line and the histogram staying green

Capital flows also remain constructive, as the Chaikin Money Flow indicator has remained above zero, suggesting buyers continue to dominate trading activity.

At the same time, the rally has become increasingly stretched as HYPE's relative strength index is climbing above 77, placing the token in overbought territory and raising the possibility of consolidation or profit-taking before another attempt higher.

Derivatives data present a similar picture.

According to CoinGlass, open interest in HYPE futures has climbed to a record $3.5 billion from roughly $1.41 billion at the beginning of the year.

Funding rates have also remained positive throughout much of the recent rally, showing that long traders continue paying short traders to maintain positions.

Liquidation data points to growing pressure on bearish bets. CoinGlass figures show approximately $126.28 million in short liquidations since May 20, compared with $68.85 million in long liquidations

Such imbalances often occur when rising prices force short sellers to buy back positions, adding fuel to an ongoing advance.

Meanwhile, the latest liquidation heatmap suggests that the process may not be over.

Significant liquidity clusters remain concentrated between roughly $75 and $77, just above current market prices

Traders often view such areas as potential magnets because large concentrations of leveraged positions can attract price action.

Beneath the market, notable liquidity sits around the $70 to $71 range, while another layer of support appears between $68 and $69

The recent pullback toward the low-$70 area swept part of that liquidity before buyers returned, leaving the larger overhead cluster intact.

As such, if HYPE continues pushing higher, traders may watch the $75 to $77 zone as the next area where a fresh wave of short liquidations could emerge

A move through that region could force additional bearish positions to close, potentially adding momentum to the rally.

On the downside, CoinGlass liquidation data suggests the $70 to $71 range remains an important support area

Losing that level could expose deeper liquidity pockets around $68 to $69, where buyers previously stepped in.

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