Viewpoint: The HYPE technical analysis has pointed to a price target above $100, breaking out of the classic bull flag pattern

On June 1, Hyperliquid’s native token HYPE has rallied more than 30% over the past five days, hitting a new all-time high of over $74. Technical analysts point to a bullish breakout driving the surge: HYPE has broken out of a bull pennant pattern, with a projected upside target of $105—equivalent to an additional ~45% gain from current levels. From a technical perspective, HYPE saw a sharp run-up in late May, forming a flagpole structure before consolidating in a triangular pattern. The token recently broke above the pattern’s upper boundary on high trading volume, confirming a bull flag pattern. This formation points to a theoretical target price of roughly $105.3, with analysts expecting that level could be reached sometime between June and July. Derivatives market data underscores the bullish momentum. Open interest for HYPE futures on Hyperliquid hit a new all-time high of $3.5 billion, a sharp jump from around $1.4 billion at the start of the year. Positive funding rates across the protocol also signal broad bullish sentiment among traders. Since May 20, short positions on HYPE have seen about $126 million in liquidations—far more than the $68.85 million in long position liquidations—highlighting a strong short squeeze during the recent rally. If the upward trend continues, further short covering could push prices even higher. Fundamentally, Hyperliquid’s growing revenue is supporting HYPE’s value. DefiLlama data shows the protocol generated $57.9 million in application revenue over the past 30 days, surpassing Ethereum to become the second-largest revenue-generating blockchain network globally, behind only Solana. A key mechanism bolstering HYPE’s price: Hyperliquid allocates 99% of all transaction fee revenue to its “Assistance Fund,” which is used to buy back HYPE on the public market. Additionally, recent U.S. regulatory clarity has boosted optimism for Hyperliquid. The U.S. Commodity Futures Trading Commission (CFTC) recently publicly acknowledged the critical role of perpetual contracts in price discovery and risk management, a major positive for the protocol since its core business revolves around perpetual contract trading. On the institutional front, the U.S.-listed HYPE ETF has attracted roughly $122 million in net inflows since its launch on May 12, indicating growing demand from institutional investors for exposure to HYPE.