Hyperliquid HYPE Breaks Out to New ATH: $105 Target Now in Play

Technical Breakout Signals Strong Continuation

Hyperliquid’s HYPE token has delivered one of the strongest performances in recent weeks. After a sharp rally in late May, the price consolidated in a symmetrical triangle before breaking out on increased volume. This formation matches a classic bull pennant pattern, where the initial flagpole surge is followed by a period of tightening price action.

Traders measure the upside target by adding the height of the flagpole to the breakout level. That calculation currently places the next major objective near $105.30. At the time of the breakout, HYPE had already gained more than 30% in five days, pushing it into price discovery territory above previous highs.

Derivatives Market Shows Clear Bullish Bias

Open interest on Hyperliquid perpetual futures has reached a record $3.5 billion, more than doubling from the start of the year. The open interest-weighted funding rate has stayed positive, meaning long positions are paying shorts to maintain their exposure. This setup reflects sustained demand from leveraged buyers.

Since May 20, short liquidations have totaled roughly $126 million, significantly higher than long liquidations. The imbalance has created repeated short squeezes that accelerate upward moves. Further gains could force additional covering and push prices toward the $100–$105 zone faster than expected.

Strong Fundamentals Drive Confidence

Beyond price action, Hyperliquid has posted impressive on-chain results. The platform recently surpassed Ethereum to become the second-largest blockchain by 30-day app revenue, generating $57.9 million. Nearly all protocol fees flow into an Assistance Fund that purchases HYPE on the open market, creating built-in buying pressure tied directly to trading activity.

The broader regulatory environment has also improved. Recent comments from the CFTC recognized perpetual futures as legitimate tools for price discovery and risk management. This development lends additional credibility to the sector where Hyperliquid operates.

Institutional Interest Through ETFs

US spot HYPE ETFs from Bitwise and 21Shares have attracted more than $122 million in net assets since launching in mid-May. Additional reports of Grayscale exploring a staking ETF for the token have added to expectations of growing institutional access. These inflows provide a steady source of demand that supports the spot price.

Whale Activity and Arthur Hayes’ Outlook

Large holders continue to accumulate. One notable transaction showed a whale purchasing nearly 46,000 HYPE tokens at an average price near $68 using over $3 million in USDC. Such moves at elevated levels suggest conviction that the current rally has further room to run.

While Hayes’ forecast represents an ambitious longer-term view, the combination of technical targets near $105 and strong ecosystem metrics makes the near-term outlook constructive. Sustained revenue growth and continued buybacks could provide the foundation for higher prices if market conditions remain favorable.

Risks and Considerations

Despite the positive momentum, risks remain. The relative strength index sits in overbought territory, raising the chance of a healthy pullback toward the 20-day moving average around $58. A decisive break below that support would question the validity of the bullish pattern.

High leverage in the derivatives market also means volatility could increase quickly. Traders should monitor funding rates and liquidation flows closely, as sudden shifts in sentiment can trigger sharp moves in either direction.