Hyperliquid (HYPE) surges 400% to $40.88 on short squeeze, open interest jumps 260%

Hyperliquid (HYPE) has demonstrated strong bullish momentum, with its price rallying to $40.88, marking a nearly fivefold increase from its April lows near $8. This surge has been fueled by rising open interest and a recent short squeeze, indicating that buyers are in control of the market. The $40 mark has become a crucial pivot point for the token’s next move, with BitMEX Co-Founder Arthur Hayes suggesting that if HYPE can hold this level as new support, it could be positioned for a rapid climb in the coming sessions.

The powerful price rally has been supported by a massive influx of capital into the HYPE derivatives market. Open interest in HYPE futures has jumped from under $500 million in mid-April to nearly $1.8 billion as of June 10. This synchronized rise suggests increasing confidence and growing participation from market players. Notably, open interest broke past key milestones at $600 million, $1.2 billion, and $1.5 billion over the past month, aligning with HYPE’s price spikes and hinting at speculative buying and likely fundamental catalysts driving interest.

Further evidence of bullish strength comes from liquidation data. A heavy concentration of short positions between the $36 and $40 levels was observed. As the price rose beyond these bands, cascading liquidations were triggered. A spike to $42.449 accompanied by $295.09K in liquidations confirmed strong bullish pressure. Buyers are in control, wiping out overleveraged shorts and paving the way for another potential move upward.

As of press time, trading at $40.88, the technical outlook remains positive. The MACD line recently crossed above the signal line, though the histogram now shows only modest strength. This suggests bullish momentum is still present, but may be slowing slightly. Meanwhile, the RSI stands at 69.99, teetering on overbought territory. While this doesn’t imply an immediate reversal, it does signal that short-term gains could cool.

Despite the current rally, projections suggest a more modest outlook by December. Analysts expect HYPE to trade between $32.90 and $33.70, representing a 17.70% decline from current levels. However, should the breakout materialize and bullish pressure remain, these estimates could quickly become outdated.