Hyperliquid’s native token, HYPE, dropped below $70 on Thursday after delivering an 80% gain in May. The dip comes amid renewed weakness across the broader cryptocurrency market, where Bitcoin (BTC) slipped below $63,000 and sparked a wave of risk-off sentiment among investors.
A key catalyst behind HYPE’s recent surge has been rising institutional participation. Newly launched HYPE-focused exchange-traded funds (ETFs) attracted roughly $135 million in inflows last month, highlighting growing demand from professional investors and helping drive the token into price discovery territory.
While momentum remains firmly bullish, analysts caution that the rally has become increasingly stretched, even as long-term projections point toward a potential move above the $100 mark.
Capital rotates from Bitcoin ETFs to Hyperliquid products
Institutional flows reveal a stark contrast between Bitcoin and Hyperliquid investment products.
Bitcoin ETFs recorded $396.6 million in net outflows on Wednesday, extending cumulative withdrawals to $4.37 billion over the past 13 trading days. The trend suggests waning institutional appetite for the world’s largest cryptocurrency amid broader market uncertainty.
By comparison, HYPE-focused ETFs attracted $2.99 million in inflows on Wednesday, marking their 15th consecutive day of positive flows and bringing total inflows to approximately $140 million.
The data points to a broader rotation of capital toward exchange-related tokens, as investors increasingly focus on platforms generating tangible revenue and expanding their product ecosystems.
Further reinforcing this trend is the launch of Grayscale’s HYPE-focused ETF on Thursday, a development widely viewed as another sign of growing institutional confidence in the Hyperliquid ecosystem.
Hyperliquid’s growth story extends beyond ETF demand. 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 shares, and commodity perpetual futures—generated $62.63 billion in trading volume during May.
The milestone marks the third consecutive month in which HIP-3 volume exceeded $60 billion, underscoring the platform’s expanding role as an “everything exchange” serving multiple asset classes.
HYPE price outlook: Can HYPE reach $100?
HYPE traded above $67 at the time of writing, extending a rally that has now lasted five consecutive weeks.
Technical indicators continue to support a bullish outlook, although they also suggest the token may be approaching overheated conditions. The Relative Strength Index (RSI) sits at 82 on the weekly chart, deep in overbought territory, while the Moving Average Convergence Divergence (MACD) indicator remains firmly 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 this resistance could pave the way for a move beyond the psychologically important $100 threshold.
Should bullish momentum continue, the next major upside target sits near the 161.8% Fibonacci extension level at $114.75, which also aligns with a long-term overhead trendline.
Despite the strong uptrend, investors should remain aware of potential downside risks. The first significant support level lies near $59.45, which previously acted as a major Fibonacci high. If selling pressure intensifies, additional support could 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 crypto market’s strongest-performing assets.
