- Hyperliquid price gave a decisive breakout from the resistance trendline of a rising channel pattern, indicating the aggressive buying pressure in the market.
- Cumulative net inflows into HYPE ETFs surged to $47.8 million, signaling rising Wall Street interest.
- Grayscale-linked wallets accumulated more than 510,000 HYPE valued near $24.95M.
Hyperliquid, the tenth largest cryptocurrency by market capitalization, rose 14% during Thursday’s U.S. market hours to reach a new all-time high of $62.5. While a majority of major cryptocurrencies struggle to sustain their recovery amid Bitcoin’s breakdown below $78,000 and market geopolitical uncertainty, Hyperliquid’s price shows an upward rally in its daily chart. The buying pressure can be attributed to several factors, including strong spot ETF inflows, cascading short, whale/institutional accumulation, and a major spike breakout in the technical chart.
HYPE Price Explodes on ETF Inflows and Short Squeeze
HYPE, the native cryptocurrency of the Layer-1 blockchain, Hyperliquid, witnessed a massive rally from $38.2 to a recent high of $62.5, projecting a 63.5% gain over the past week. The primary catalyst for this surge is substantial inflow into spot exchange-traded funds (ETFs) associated with HYPE.
Institutional demand for Hyperliquid is scaling rapidly following the launch of US spot HYPE ETFs on NYSE Arca, including products from Bitwise (BHYP) and 21Shares (THYP). According to the Sosovalue data, these ETFs attracted $25.46 million on Wednesday, which uplifted its cumulative total net inflow to $47.80M.
Even Bloomberg ETF analyst Eric Balchunas also noted that “Giant step increases from Day One, which is very rare.” He added, “Normally, big splash day one, then drops off. OR oblivion for months until ppl notice it. Rare to build in the first week like this.”
Another key catalyst behind Hyperliquid’s rapid price surge was the cascading liquidation of short positions in the futures market. Derivative market data shows that HYPE saw $24.06 million in short liquidations on Monday. Today’s price action triggered yet another wave of liquidations, wiping out an additional $15.1 million in shorts.
Despite the significant spike in Hyperliquid price since last week, the high-net-worth investors continue to build a position in hype
Recent on-chain activities indicate that institutional players have been active in HYPE tokens. Galaxy Digital (0xBED9) bought 158,100 HYPE that cost approximately $8.8 million just two hours before reporting.
Separately, a newly created address (0x4CBB) withdrew 536,247 HYPE tokens valued at roughly $29.87 million from Coinbase over the past two days. These large withdrawals can signify a transition to self-custody.
In addition, Grayscale Investments filed an S-1 registration for a HYPE ETF in January. Two wallets belonging to this firm bought 510,387 HYPE over the last week for some $24.95 million and immediately staked the tokens.
Blockchain data from tracking platforms recorded these transfers as independent actions by identified institutional addresses.
Hyperliquid Price May Enter Short-Pullback Before Next Leap
On May 20th, the Hyperliquid price witnessed a massive spike of roughly +14% and breached the resistance trendline of a rising channel pattern. Since late January, the two parallel trendlines of the pattern acted as dynamic resistance and support for traders and carried a steady uptrend in the daily time frame chart.
Despite the prevailing uptrend, the HYPE price still surged above the upper resistance trendline of this channel pattern, indicating the aggressive nature of buyers to own this asset. Earlier today, the coin price offered a suitable follow-up to this breakout with a massive intraday surge of 14.2% and reached a new high of $62.5.
However, the overhead supply pressure at this resistance has reverted the Hyperliquid price to $57.8 current trading value, indicating a potential pullback in the market to recoup the exhausted bullish momentum. As a result, the coin price could plunge another 7% to $53.75 to retest the breached trendline of the channel pattern.
If the retest holds above the breached trendline in the last week of May, the HYPE price could drive its next recovery leap to the $68 mark.
