HYPE Token Surges 96% Amid Bullish Sentiment and Whale Activity

Arthur Hayes, the former CEO of BitMEX, recently made a bold prediction that the HYPE token, associated with the Hyperliquid platform, could reach $100. This forecast has sparked considerable interest and optimism within the cryptocurrency community, leading to a surge in the price of HYPE. Hayes' confidence is rooted in Hyperliquid’s powerful technology, which uses a custom-built HyperBFT consensus mechanism and can process up to 100,000 transactions per second. This level of speed and efficiency positions Hyperliquid as a serious player in the decentralized finance (DeFi) space, with the potential to challenge more established blockchains.

The rally in HYPE's price has been supported by several key factors. Firstly, the open interest in Hyperliquid surged to $997.5 million, indicating a high level of market participation and leverage. This surge in open interest, coupled with a 22% increase in HYPE's price over seven days, has positioned the token at $30.72. Technical indicators such as the Relative Strength Index (RSI) at 76.76 and the Moving Average Convergence Divergence (MACD) crossover suggest that the token is in an overbought momentum phase, which is typically associated with strong bullish sentiment.

The On-Balance Volume (OBV) and Chaikin Money Flow (CMF) indicators further support this bullish outlook, reflecting rising accumulation and strong capital inflows. Additionally, a significant whale liquidation event, where a trader suffered an $18.88 million loss on a 5x short position, highlights the dominance of bullish sentiment in the market. Analysts remain cautiously bullish, predicting that a breakout above the $32.67 resistance level with sufficient volume could lead to a new all-time high for HYPE.

The recent price action of HYPE has been characterized by a strong bullish momentum, with the token surging nearly 96% from its April low. This rally began after a prolonged downtrend that started around February 22, when HYPE traded just below $18 and slid to a cycle low of $15.70 by April 8. This downtrend established a critical support zone between $15.70 and $18.00, which served as the springboard for the subsequent rally. The token has since climbed to its current price of $30.72, approaching the $32.67–$35.00 resistance zone, which aligns with both its December all-time high and the whale liquidation mark.

The technical indicators further support the bullish outlook. The RSI at 78.20 confirms overbought territory, signaling strong bullish momentum. The MACD has crossed above its signal line, and the Bollinger Bands are widening, with the price hugging the upper band. The Exponential Moving Average (EMA) stack (20/50/100/200) is in perfect bullish alignment, with HYPE remaining well above the 20-day EMA, now a key support near $28.20. Holding this level suggests strength in buying dips.

Capital flow indicators also validate the uptrend. The CMF at +0.30 signals robust inflows, while the OBV is rising after months of decline, indicating renewed net accumulation. This confluence adds weight to the bullish case for a breakout above $32.67. However, entries at current levels carry higher risk due to stretched indicators. A volume-backed breakout above $32.67 or a retracement toward $28.20–$25.10 could offer stronger entry points. Bulls remain in control unless the $25 level breaks down.

On-chain metrics also support the bullish sentiment. Open interest has now reached $997.57 million, suggesting increased leverage and directional bets. Perpetual volume is surging alongside decentralized exchange (DEX) activity, with Hyperliquid leading open interest dominance across platforms. DEX trading volume has surged 97.4% month-over-month, while daily protocol revenue climbed to $3.1 million, up from approximately $2.1 million a few weeks ago. Daily transactions are holding above 429.4 million, reinforcing consistent usage.

Whale activity is also shaping sentiment. On May 22, a whale took a 5x leveraged short against HYPE, posting 2.05 million USDC, only to face an $18.88 million unrealized loss, with liquidation looming at $32.67. Another whale placed an $830 million BTC long at 40x leverage on Hyperliquid, reflecting increasing platform confidence. These whale movements, both failed shorts and bullish long entries, support the current uptrend in HYPE’s structure.

In conclusion, Hyperliquid’s native token HYPE is experiencing a textbook breakout scenario, backed by strong technicals and on-chain activity. With leverage piling up and whale shorts getting punished, the path to retesting $35 looks increasingly probable. However, traders should monitor the $32.67 zone closely. A breakout above this level with rising volume could flip it into support and trigger a new all-time high. Failure to breach may invite consolidation toward $28.20 or even $25.10. The bullish bias remains intact while above $28.20. A breakout above $32.67 confirms upside continuation. Caution is advised if the RSI diverges or volume drops.