Hyperliquid Price Surges 40%: Can Bulls Push HYPE to New Highs?

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Hyperliquid price rallies over 40% in a week, can bulls push higher?

I’ve been watching Hyperliquid’s HYPE token, and it’s really taken off – up over 40% in the last week! It seems like big players are buying in, trading volume is hitting new records, and technically, it’s broken through a key resistance level. Lots of traders, myself included, are thinking this could continue to climb.

Summary

  • Hyperliquid price has surged more than 40% over the past week, supported by ETF inflows, protocol buybacks, and rising perpetual futures activity.
  • CoinGlass liquidation data showed heavy short liquidation clusters between $65 and $66.7, raising the possibility of a fresh squeeze if bulls break higher.
  • Whale activity intensified during the rally, with trader Garrett Jin accumulating over $9 million in HYPE while other large holders placed sell orders near the $70 region.

Hyperliquid (HYPE) saw a significant price increase over the past week, rising from about $45 to a peak near $64 on May 25 before settling around $63, according to crypto.news. This happened despite a difficult period for Bitcoin, which struggled to break past $110,000, and sideways trading for many other major cryptocurrencies, all influenced by concerns about U.S. Treasury yields and what the Federal Reserve might do with interest rates.

Recent developments with investment funds have been a major factor in the price increase. Two new exchange-traded funds (ETFs), 21Shares Hyperliquid and Bitwise Hyperliquid, began trading in the U.S. earlier this month, allowing institutions to easily invest in HYPE. These funds quickly attracted over $53 million in investments, further increasing demand for HYPE in a market where supply is already limited.

Adding to the positive outlook for HYPE, Bitwise announced it will use 10% of its ETF management fees to buy and hold HYPE tokens. Investors see this as a potential signal that asset managers are starting to view HYPE as a long-term investment, similar to how they handle other important company assets, rather than just a risky trade.

Hyperliquid’s future revenue looks stronger because its technology now works more closely with Coinbase and Circle through the AQAv2 system.

Coinbase will send a significant portion of the earnings from USDC used on Hyperliquid back into the Hyperliquid system. Circle will also contribute by locking up 500,000 HYPE tokens to help strengthen the network’s ability to facilitate transactions.

Recent increases in the price of cryptocurrencies have also led to improvements in the underlying technology. Hyperliquid, a platform for trading perpetual futures, has seen record trading activity in areas like synthetic commodities, prediction markets, and pre-IPO shares, which has significantly increased the fees it collects. According to Forbes, almost all of these fees – between 97% and 99% – are used to automatically buy back and reduce the supply of HYPE, the platform’s token, through a special fund built into the blockchain.

With more trading happening, the protocol automatically bought back HYPE tokens regularly, which increased demand as trading volume went up. Many traders now see this as one of the most powerful ways to reduce the token supply in the entire crypto market.

Recent price swings have been made more unpredictable by the actions of a large HYPE token holder. Data from Lookonchain shows that Garrett Jin bought $9.05 million worth of HYPE (145,050 tokens) in the last four days. At the same time, he placed an order to buy another $2.44 million (39,940 tokens) using a method called a TWAP order, which spreads out the purchases over time.

At the same time, not all large holders are positioning for further upside.

As I’ve been tracking the $HYPE token, I’ve noticed some interesting activity. While there’s been a lot of upward price movement, not everyone is buying. Today, one significant wallet, 0x632B, actually sold a substantial amount – 151,574 $HYPE, worth around $9.25 million. They’re also preparing to sell even more – they’ve set limit orders to sell another 170,000 $HYPE (valued at about $10.58 million) if the price hits between $63.45 and $70.55. This suggests some profit-taking is happening at these higher levels.

— Lookonchain (@lookonchain) May 25, 2026

The current market activity indicates that some whales are starting to sell off portions of their holdings as the price nears key resistance levels, which are psychologically significant for traders.

Can Hyperliquid’s technical breakout trigger another rally?

Looking at the daily chart, HYPE seems to have broken out of a strong upward trend that has limited its price movement since February.

Throughout April and early May, the price stabilized around a key resistance level. Then, buyers pushed the price sharply higher, breaking above that resistance near $50. This strong move has continued, bringing the price to around $64, and it also means previous concerns about a potential downward trend are no longer valid.

Currently, the 50-day moving average is around $44 and the 200-day moving average is around $34.5, which suggests a solid upward trend. HYPE’s price is well above both of these levels, often indicating that the price is likely to continue rising.

Technical indicators are now clearly showing a positive trend. The MACD histogram is significantly positive, and the MACD line is consistently moving higher than its signal line following a recent breakout. The growing size of the histogram bars indicates that the current buying strength hasn’t diminished, even with the substantial price increase.

Current market positioning suggests we could see increased price swings soon. Data from CoinGlass shows a lot of leveraged short positions are clustered between $65 and $66.7. If the price breaks above this range, it could force many overleveraged traders to close their positions, potentially causing a rapid price increase – a ‘short squeeze’.

From my analysis, I’m seeing some key support levels forming around $61 and $60.50. There’s a good amount of buying activity clustered at those prices, which means we could see bounces if the market dips. I’m also noticing a lot of leveraged positions around those levels, so I expect traders will actively try to prevent prices from falling below them – they’ll likely step in to buy if we see any selling pressure.

While funding rates on most exchanges are currently positive, they haven’t reached the very high levels often seen when price cycles peak. More significantly, open interest is increasing along with the price, suggesting that new traders are taking on leveraged positions instead of simply covering existing short bets.

According to market analyst Altcoin Sherpa, HYPE is currently a very strong trend in the cryptocurrency market. They believe traders who capitalize on short-term price movements will probably keep buying when prices drop, unless there’s a major, overall downturn in Bitcoin’s value.

What risks could slow the HYPE rally?

Although the market is currently showing strong gains, some broader economic and market factors could potentially cause these gains to slow down or reverse in the near future.

What the Federal Reserve does with interest rates is still a big influence on investments like stocks and cryptocurrency. Recent economic reports show that inflation isn’t coming down as quickly as hoped, which has caused interest rates on government bonds to rise and lowered the chances of quick interest rate cuts. Historically, when interest rates go up, it tends to negatively affect riskier investments, especially those in the crypto market where people often borrow heavily to trade.

Oil prices are still fluctuating due to ongoing political instability in Iran and disruptions to shipping in the Strait of Hormuz. Unexpected increases in crude oil prices could make investors more cautious, despite the fact that Hyperliquid has seen a boost in trading volume because of these same issues.

As the price of HYPE approaches $65 to $70, some large investors might start selling to secure profits, especially after the recent and significant price increase. These large sell orders, visible on blockchain data, could briefly halt further price gains unless there’s enough new buying interest to offset the selling.

Despite recent volatility, several factors suggest continued positive momentum. Increased investment through ETFs, automated purchases within the system, growing activity in the derivatives market, and greater involvement from institutional investors are all contributing to a particularly strong and promising outlook for altcoins.

If the price of HYPE rises above $66.70, it could continue to climb towards $70, and potentially into the $74-$76 range. However, if the price falls below $60, it could drop further, possibly back down to around $50, where it previously found resistance but may now find support.

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2026-05-25 14:53