Hyperliquid’s token, HYPE, dropped below $70 on Thursday after posting an 80% gain in May. The dip comes amid renewed weakness in the broader cryptocurrency market, with Bitcoin (BTC) falling below $63,000 and sparking pessimism among investors.
A major contributor to the recent surge in HYPE has been the rise of corporate participation. The newly launched HYPE-focused exchange-traded funds (ETFs) attracted $135 million in investment last month, reflecting demand from financial experts and helping to drive the index into the price zone.
While the rally is still tentative, analysts are warning that the rally has peaked, although long-term estimates point to a potential move above $100.
Capital fluctuates from Bitcoin ETF to Hyperliquid
Institutional trends reveal a major difference between Bitcoin and Hyperliquid Investments.
Bitcoin ETFs recorded $396.6 million in net inflows on Wednesday, extending their inflows to $4.37 billion over the past 13 days. The developments show a decline in the interest of the world’s largest cryptocurrency exchange amid uncertainty in the market.
By comparison, HYPE-focused ETFs attracted $2.99 million in inflows on Wednesday, marking their 15th consecutive day of gains and bringing in nearly $140 million in inflows.
The data shows a significant shift in investment towards exchange-related tokens, as investors focus on platforms that generate tangible income and expand their ecosystem.
Reinforcing this trend is the launch of Grayscale’s HYPE-focused ETF on Thursday, a development seen by many as another sign of institutional confidence in the Hyperliquid ecosystem.
Hyperliquid’s growth profile exceeds that of ETFs. According to Hyperscreener data, the HIP-3 protocol platform—which supports 24/7 trading of real world assets (RWAs), including publicly-listed stocks, IPO shares, and perpetual financial futures—generated $62.63 billion in trading in May.
The event is the third month in a row that HIP-3’s volume exceeded $60 billion, confirming the growth of the platform as an “everything exchange” that supports multiple asset classes.
HYPE price outlook: Can HYPE reach $100?
HYPE traded above $67 at the time of writing, extending a five-week rally.
Technical indicators continue to support the bullish trend, although they are also showing that the indicator is approaching overheating. The Relative Strength Index (RSI) is at 82 on the weekly chart, in the middle of the overbought area, while the Moving Average Convergence Divergence (MACD) indicator remains strong and increases the strength of the trade.
From a technical perspective, HYPE is approaching the 127.2% Fibonacci retracement level at $79.40. A weekly confirmed close above this resistance would pave the way for a break above the critical $100 level.
If the upward momentum continues, the next major target is near the 161.8% Fibonacci retracement level at $114.75, which is also in line with the long term.
Despite the bullishness, investors should be aware of what could happen. The first support level is near $59.45, which previously served as a major Fibonacci retracement. If the selling continues, additional support may appear around the 78.6% Fibonacci retracement level at $47.34.
Meanwhile, institutional stability, growth in sales, and expansion of product sales continue to support Hyperliquid’s challenge as it tries to establish itself as one of the most active assets in the crypto market.
