HYPE breaks above $74 to hit a new all-time high, with technical patterns pointing to a target of $105, but more importantly, its open interest has risen to $3.5 billion, doubling from $1.4 billion at the start of the year. This data indicates that HYPE's rise is not solely driven by retail sentiment but is accompanied by large-scale, high-leverage institutional capital entering the market. The short squeeze effect (liquidation of $126 million in shorts) and persistent positive funding rates together form a typical derivative-driven bullish cycle.

Hyperliquid, as the leading perpetual contract DEX, has a mechanism where 99% of its fee income is used to buy back HYPE, directly converting protocol revenue (last month $57.9 million, surpassing Ethereum) into buy pressure for the token. This "value capture flywheel" has gained stronger narrative support under the warm regulatory environment where the CFTC publicly recognizes the role of perpetual contracts. Meanwhile, the US HYPE ETF has raised $122 million in less than a month, showing that traditional capital channels are opening, echoing last year's case of Eyenovia rebranding and heavily investing in HYPE, linking crypto-native narratives with traditional finance.
The most notable detail is that the "Assistance Fund" buybacks are conducted on the open market. This means huge protocol revenue is converted into sustained, transparent on-chain buy orders, directly linked to price movements. In a high-risk environment with record-high open interest, this mechanism provides both theoretical support for the price and could weaken buy pressure if revenue declines during a market reversal, creating a dual amplification effect.
The current rally is fundamentally driven by a resonance of three forces: derivative leverage, protocol fundamentals, and emerging institutional channels.
On June 1, Hyperliquid's native token HYPE rose over 30% in five days, briefly surpassing $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 around $105, leaving about 45% room for 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 pattern, and recently broke out above the upper trendline with increased volume. Based on the bull pennant pattern, the theoretical target price is approximately $105.3, which could be achieved between June and July. $HYPE
{future}(HYPEUSDT)