Hyperliquid’s native token, HYPE, slipped below $70 on Thursday after gaining about 80% in May. The pullback came as weakness returned across the broader cryptocurrency market, with Bitcoin (BTC) dipping under $63,000 and prompting a wave of risk-off sentiment among investors.
Institutional interest has been a major driver of HYPE’s recent rise. HYPE-focused exchange-traded funds (ETFs) drew roughly $135 million of inflows last month, signaling growing demand from professional investors and helping push the token into price-discovery territory.
Although momentum remains bullish, analysts warn the rally looks stretched in the short term even as longer-term forecasts still point to the possibility of HYPE surpassing $100.
Capital rotates from Bitcoin ETFs to Hyperliquid products
Institutional flows reveal a clear divergence between Bitcoin and Hyperliquid investment vehicles.
Bitcoin ETFs posted $396.6 million in net outflows on Wednesday, extending cumulative withdrawals to about $4.37 billion over the past 13 trading days. That pattern indicates waning institutional appetite for the largest crypto amid broader market uncertainty.
By contrast, HYPE-focused ETFs registered $2.99 million in inflows on Wednesday, marking their 15th straight day of positive flows and bringing total inflows to roughly $140 million.
These flows point toward a rotation of capital into exchange-related tokens as investors look for platforms that generate revenue and expand product ecosystems.
The launch of a Grayscale HYPE-focused ETF on Thursday further reinforced that narrative, signaling growing institutional confidence in the Hyperliquid ecosystem.
Hyperliquid’s expansion is not driven solely by ETF demand. Data from Hyperscreener show the platform’s HIP-3 protocol—which supports 24/7 trading of tokenized real-world assets (RWAs) such as publicly listed stocks, pre-IPO shares, and commodity perpetual futures—recorded $62.63 billion in trading volume during May.
That figure marks the third consecutive month HIP-3 volume exceeded $60 billion, highlighting Hyperliquid’s growing role as a multi-asset “everything exchange.”
HYPE price outlook: Can HYPE reach $100?
At the time of writing, HYPE traded above $67, extending a rally that has lasted five consecutive weeks.
Technical indicators support a bullish view but also warn of overheated conditions. The weekly Relative Strength Index (RSI) sits near 82, deep in overbought territory, while the Moving Average Convergence Divergence (MACD) remains positive with expanding bullish momentum.
From a technical perspective, HYPE is approaching the 127.2% Fibonacci extension level at $79.40. A decisive weekly close above that resistance could open the path toward the psychological $100 level.
If bullish momentum persists, the next major upside target would be near the 161.8% Fibonacci extension at $114.75, which also aligns with a long-term overhead trendline.
Despite the uptrend, investors should be mindful of downside risks. The first meaningful support sits near $59.45, a prior Fibonacci high. If selling intensifies, additional support may appear around the 78.6% Fibonacci retracement at $47.34.
For now, sustained institutional inflows, robust trading activity on HIP-3, and expanding product offerings underpin the bullish thesis for Hyperliquid as it seeks to establish itself among the market’s top-performing crypto assets.