In the past 24 hour, the native Hyperliquid token, HYPE has risen by more than 23 percent, reaching $47 last Friday. This is its highest price since October 20,25.
Chart for HYPE/USDT on a daily basis. Source: TradingView
Does the HYPE token still have the momentum it needs to continue its bullish run?
The key takeaways
- Multiple launches of the US Spot HYPE ETF this week has strengthened institutional demand for the token.
- Coinbase’s USDC treasury deployment by Hyperliquid boosts HYPE price.
HYPE launches ETFs fuel hopes for institutional demand
The most immediate driver of HYPE’s rise appears to be US-listed Hyperliquid Exchange-Traded Products.
Bitwise’s spot Hyperliquid ETF was launched on Friday. It trades under the BHYP ticker at the NYSE.
Daily chart for HYPE/USDT. TradingView
The fund will give investors regulated exposure through Bitwise’s staking unit. The fund’s sponsor fee has been set at 0.34 percent, and the first 500 million dollars of assets are exempt from the charge for one month.
This launch comes after the Hyperliquid ETF (THYP) from 21Shares. debuted On Nasdaq Tuesday.
A day later, onchain data resource Lookonchain claimed The wallets associated with venture capital company a16z purchased over $67.5 Million worth of HYPE Tokens.
Source:
Hyperliquid has seen a rise in institutional interest as reflected in reports that the purchases were made in the months leading up to ETF launches.
The ability of the HYPE funds to sustain gains through May depends on their ability to attract significant inflows, rather than merely generating speculation during launch week.
On Friday, the company managed $3.17million in assets. SoSoValue data.
US spot HYPE ETFs net flows. Source: SoSoValue
Coinbase-Circle deal gives HYPE rally a structural boost
Coinbase also boosted HYPE’s rally announced USDC announced on Thursday it has become the official Treasury deployer for Hyperliquid.
This deal consolidates USDC as the primary collateral asset and quoted asset on Hyperliquid’s Onchain Markets.
According to Hyperliquid, the stablecoin is the most dominant in the system, with a supply of approximately $5 billion. DefiLlama.
Hyperliquid Stablecoin Market Cap. Source: DefiLlama
Coinbase will be expected to split the revenue from USDC that is deployed through Hyperliquid, with the Protocol under AQAv2.
Circle is also the technical deployer for USDC in Hyperliquid, and it has pledged to stake 500,000 of its HYPE tokens.
“It’s an admission that Hyperliquid is too dominant in perps to displace, so better to align and capture distribution,” Aylo, Aylo said Additions to a blog post published on Thursday:
“We should see an increase of ~$140M+ in annualised revenue which will be used to buyback HYPE.”
CLARITY act progress is a positive regulatory development
HYPE rallied as US crypto regulations showed progress.
On May 14, Senate Banking Committee approved the CLARITY Act in a 15–9 vote, marking a key step for a bill that aims to define when digital assets fall under securities or commodities rules.
Updates improved the mood across all crypto markets and triggered intraday rallies. Bitcoin, Ethereum, XRP Other top coins
The CLARITY act is still not a law. Now, the bill is headed to the Senate where it may need bipartisan support in order to pass procedural hurdles.
The Senate version would need to be reconciled with the House’s before a final bill could be submitted to Donald Trump.
HYPE Rising wedge predicts 30% price correction
HYPE continues to move upwards in what looks like a wedge-shaped pattern. This is confirmed by a price that has been trending within two ascending, converging trend lines.
This wedge occurs in technical analysis whenever the price drops below its trend line, and then falls at the same level as the maximum height of the structure.
Daily chart for HYPE/USDT. TradingView
Applying this rule to the HYPE chart brings its downside target to the $26.5–$31.20 range, depending on the potential breakdown point, as shown above. This means that a 30% to 45% correction could occur by July or June.
Conversely, a decisive breakout above the rising wedge’s upper boundary may invalidate the bearish setup altogether, pushing HYPE’s price toward the $59–$60 range, aligning with the 1.0 Fibonacci retracement level shown below.
Daily chart for HYPE/USDT. TradingView
HYPE’s daily relative Strength Index (RSI), which measures the strength of the index on a daily basis, also confirms the bullish short-term outlook. The indicator is still below 70 which indicates that the rally can continue.
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Source: cointelegraph.com
