Hyperliquid’s native token, HYPE, fell below $70 on Thursday after posting an 80% gain in May. The decline comes amid renewed weakness in the broader cryptocurrency market, with Bitcoin (BTC) falling below $63,000 and sparking a wave of risk-off sentiment among investors.
The main driver behind the recent boom in HYPE has been the rise in institutional participation. Newly launched HYPE-focused exchange-traded funds (ETFs) attracted nearly $135 million in inflows last month, highlighting growing demand from professional investors and helping push the token into price discovery territory.
While momentum remains solidly bullish, analysts warn that the rally is becoming increasingly extended, even as the longer-term outlook points toward a potential move above $100.
Capital is rotated from Bitcoin ETFs into Hyperliquid products
Institutional flows reveal a stark contrast between Bitcoin and Hyperliquid investment products.
Bitcoin exchange-traded funds recorded $396.6 million in net outflows on Wednesday, expanding cumulative withdrawals to $4.37 billion over the past 13 trading days. This trend indicates a decline in institutional appetite for the world’s largest cryptocurrency amid broader market uncertainty.
In comparison, HYPE-focused ETFs attracted inflows of $2.99 million on Wednesday, marking the 15th straight day of positive inflows and bringing total inflows to about $140 million.
The data suggests a broader rotation of capital towards exchange-linked tokens, as investors increasingly focus on platforms that generate tangible revenues and expand their product ecosystems.
This trend is further reinforced by the launch of Grayscale’s HYPE-focused ETF on Thursday, a development widely seen as another sign of growing institutional confidence in the Hyperliquid ecosystem.
Hyperliquid’s growth story extends beyond demand for ETFs. According to Hyperscreener data, the platform’s HIP-3 protocol — which enables 24/7 trading of tokenized real-world assets (RWAs), including publicly listed stocks, pre-IPO stocks, and perpetual commodity futures — generated $62.63 billion in trading volume during May.
This milestone marks the third consecutive month that HIP-3’s volume has exceeded $60 billion, underscoring the platform’s expanding role as an “exchange for everything” serving multiple asset classes.
HYPE Price Forecast: Can HYPE reach $100?
HYPE was trading above $67 at the time of writing, extending a rally that has now continued for five straight weeks.
Technical indicators continue to support the bullish outlook, although they also indicate that the token may be approaching overheating conditions. The Relative Strength Index (RSI) is at 82 on the weekly chart, deep into overbought territory, while the Moving Average Convergence Divergence (MACD) remains strongly positive as bullish momentum expands.
Technically, HYPE price is close to the 127.2% Fibonacci extension level at $79.40. A decisive weekly close above this resistance could pave the way for a move beyond the psychologically important $100 threshold.
If the bullish momentum continues, the next major upside target is near the 161.8% Fibonacci extension level at $114.75, which is also in line with the upper long-term trend line.
Despite the strong upside, investors should remain aware of potential downside risks. The first important support level is near the $59.45 level, which served as a major Fibonacci high. If selling pressure intensifies, additional support may emerge around the 78.6% Fibonacci retracement level at $47.34.
For now, sustained institutional inflows, growing trading activity and expanding product offerings continue to support the bullish case for Hyperliquid as it attempts to establish itself as one of the strongest performing assets in the cryptocurrency market.
