Hyperliquid Token HYPE Surges 11% to New All-Time High of $39.39

On May 26, the Hyperliquid (HYPE) token reached a new all-time high of $39.39, marking an 11% increase in the past 24 hours. This surge is part of a broader upward trend that began on April 7, when the token reversed its downtrend from around $10. Since then, HYPE has seen a remarkable 300% return, reflecting strong investor confidence and market momentum.

The price movement gained significant traction when HYPE broke out of a descending parallel channel on May 21, closing above the $27.50 resistance level. This breakout cleared the path for new highs, leading to a parabolic rally that saw the token gain over 50% in under a week to reach its peak on May 26.

Technical analysis supports the current bullish momentum. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators continue to trend upward, although they are in overbought territory. Wave count analysis suggests that HYPE completed an A-B-C corrective structure on April 7, followed by the start of a five-wave impulsive move upward. According to this structure, HYPE is now in the fifth and final wave of the current bullish cycle, with potential price targets of $44.65 and up to $56.70 based on wave patterns.

The fundamentals of the Hyperliquid DEX also contribute to the token's performance. The platform recorded over $1.2 billion in open interest and $455 million in total value locked, indicating a rapidly expanding user base and trading activity. Around 97% of all trading income returns directly to HYPE token holders, creating underlying value for long-term investors through revenue sharing.

Recent whale activity has further fueled the rally. Two large whales purchased tokens worth approximately $10 million at the $34 price point, creating momentum and triggering short liquidations. The market witnessed almost $753,000 in short liquidations in the past 24 hours alone, with long liquidations totaling only about one-third of that amount. This disparity suggests that bullish sentiment remains dominant among traders.

One trader, James Wynn, closed a $1.2 billion Bitcoin long position and opened a similarly sized short position, highlighting the high-stakes trading activity that Hyperliquid supports. The platform’s on-chain architecture provides a low-cost, high-performance trading experience, with both open interest and 24-hour fees reaching record levels last week, underscoring increased market participation.

Current technical and fundamental analysis suggests that HYPE remains well-positioned for continued upside. The wave count indicates that the rally may be approaching its final phase, with potential for one more push higher before a corrective period. The strong fundamentals and bullish market sentiment support the possibility of further gains in the near term.