Hyperliquid's HYPE Token Surges Over 30%, Eyes $105 Target

Hyperliquid's native token, HYPE, has experienced a significant rally, climbing more than 30% in five days to reach a record high near $74. According to Cointelegraph, this surge follows a bullish breakout from a chart pattern known as a bull pennant, which suggests a potential move above $100. The breakout has set a measured upside target near $105, indicating further potential gains for the token. The rally began after HYPE formed a bull pennant pattern, characterized by a sharp rise followed by a consolidation phase within a symmetrical triangle. This pattern typically resolves with a breakout above the upper trend line, which HYPE achieved over the weekend on rising trading volumes. If the pattern continues to play out, the token could reach its target of approximately $105.30 by June or July, representing a 45% increase from current levels. However, the token's relative strength index (RSI) has surpassed 77, indicating overbought conditions and the possibility of a short-term consolidation or correction. In the derivatives market, Hyperliquid's open interest has surged to a record $3.5 billion, up from $1.41 billion at the start of the year, as reported by Coinglass. This increase suggests a growing influx of leveraged capital into HYPE markets, supporting the bullish momentum. The open interest-weighted funding rate remains positive, indicating a bullish bias among traders. Since May 20, HYPE has seen significant short liquidations totaling $126.28 million, compared to $68.85 million in long liquidations, suggesting a short squeeze as bearish traders close positions. Fundamentally, Hyperliquid has surpassed Ethereum to become the second-largest blockchain by app revenue on a 30-day rolling basis, generating $57.9 million, according to DefiLlama. The chain's protocol fees are primarily routed to its Assistance Fund, which buys HYPE on the open market, creating recurring demand for the token. Additionally, the CFTC's recent recognition of perpetual futures as valuable tools for price discovery and risk management has bolstered the market's legitimacy, benefiting Hyperliquid's business model. Since this update, HYPE has rallied approximately 25%. The introduction of US-listed HYPE exchange-traded funds (ETFs) has further fueled the rally. Since their debut on May 12, ETFs from Bitwise and 21Shares have attracted $122.2 million in net assets, indicating early institutional interest in the digital token. This growing demand and the bullish technical setup suggest that HYPE may continue its upward trajectory toward the $100–$105 target zone.