Foreign media reports that Hyperliquid's token HYPE continued its upward trend in May, with prices finding support during multiple pullbacks and reaching a new all-time high of $70.36. The article argues that this surge was not solely driven by short-term sentiment; increased trading volume and sustained buying allowed the price to break through multiple resistance levels, subsequently entering a faster upward phase.
After hitting a new high, some funds began to take profits, and HYPE fell back to around $68 to $69. However, the pullback was relatively limited, and the selling pressure was quickly absorbed by the market. Based on this, the article judges that buying is still dominant, and if it breaks through $70.36 again, the price may continue to rise.
Whales continue to increase their holdings at high levels.
On-chain data shows that recently a large investor deposited $3.12 million USDC and then bought 45,887 HYPE tokens at an average price of approximately $68.09, corresponding to a spot holding value of over $3.14 million.
The article argues that such funds typically do not enter the market proactively when there is a lack of anticipation. Unlike waiting for a deep correction, this purchase occurred when prices were near historical highs and the market was still in an upward phase, indicating that some large holders are still absorbing selling pressure.
The $150 target has increased attention.
Arthur Hayes' $150 target further amplified market attention on HYPE. The article states that while this assessment wasn't the starting point of the current rally, the expectation reinforced bullish sentiment and attracted more traders as prices approached historical highs.
As discussions intensified, risk appetite near HYPE also increased. The article noted that at the time of writing, open interest in the asset had risen to $3.3 billion, indicating that more funds were positioning themselves around this narrative.
Increased leverage leads to higher volatility
However, the article also points out that while market expectations are rapidly rising, volatility sensitivity is also increasing. Expanding open interest indicates increased participation from leveraged funds, which could amplify short-term fluctuations should prices experience a more significant pullback.
Overall, the article argues that HYPE is currently in a momentum-driven phase, with strong performance supported by large-scale buying and buying support at high levels. However, given that prices are already high and market expectations continue to rise, future price movements will depend more on whether funds continue to flow in and whether the market can continue to digest the high valuation expectations.
