Hyperliquid bulls now target $40 after HYPE hit new ATH

The price of HYPE, the native token of Hyperliquid, has soared to a new all-time high of $37.44 according to CoinMarketCap data.

This milestone reflects a continued surge that began in early April, with the token climbing 285% from its local bottom of $9.

Since then, HYPE has rapidly gained traction in the decentralised finance (DeFi) sector, fueled by rising user activity, increasing open interest, and growing investor confidence.

Notably, HYPE’s market capitalisation now stands at approximately $11.93 billion, placing it as the 14th-largest crypto asset by market value.

Momentum strengthens as network metrics skyrocket

Hyperliquid has experienced a sharp increase in trading volume, which has contributed to the bullish price momentum of its native token.

According to DeFi Llama, the platform processed over $60 billion in trades over the past seven days, outpacing major DeFi competitors like PancakeSwap and Uniswap.

Hyperliquid L1 trading volume | Source: DefiLlama

This explosive activity has also driven up platform fees, which hit a record $17 million over the same period.

These rising fees reflect the high engagement from traders and increased usage of Hyperliquid’s decentralised perpetual futures platform.

As trading volumes continue to surge, the total value locked (TVL) on the network has grown to nearly $441 million, demonstrating stronger capital retention and deeper market liquidity.

The uptick in both TVL and trading activity signals a maturing ecosystem with increasing investor participation.

Derivatives market signals bullish continuation

Recent data from Hyperliquid’s derivatives dashboard reveals a 60.58% jump in daily trading volume to $1.84 billion.

Simultaneously, HYPE’s open interest has climbed 8.12% to $1.27 billion, suggesting that traders are positioning for further upside.

These figures are reinforced by Hyperliquid’s Whale Tracker, which shows balanced positioning among major players.

With $3.47 billion in long positions and $3.54 billion in shorts, the platform’s futures market remains highly active and closely contested.

Despite near parity in positioning, long traders currently enjoy a net profit of $198.13 million, while shorts have incurred a combined loss of $175.57 million.

This dynamic points to bullish dominance over recent trading sessions, especially as major whale accounts continue to accumulate long exposure.

Technical patterns support the bullish trend

Technical analysis reveals a cup-and-handle breakout on the HYPE daily chart, signalling a classic bullish continuation pattern.

Hyperliquid price chart | Source: TradingView

Given the 81.36% depth of the cup, the projected breakout target is estimated at above $51.74, though traders are initially eyeing a psychological resistance at $40.

This technical setup aligns with the current macro backdrop, where Bitcoin’s new all-time high of over $111,000 has ignited broader altcoin enthusiasm.

As capital flows into high-performance platforms like Hyperliquid, tokens with strong fundamentals are leading the charge.

Regulatory developments boost investor confidence

Hyperliquid’s rise is not just technical, it also stems from strategic moves on the regulatory front.

The project has engaged directly with the US Commodity Futures Trading Commission (CFTC), submitting detailed comment letters on perpetual derivatives and 24/7 crypto trading practices.

In these communications, Hyperliquid emphasised its commitment to transparency, decentralised infrastructure, and on-chain auditability.

This proactive approach to regulation has bolstered trust among institutional investors and signalled the platform’s readiness to operate under clearer compliance frameworks.

Outlook remains strong for HYPE Bulls

With growing momentum across volume, user engagement, and regulatory alignment, HYPE bulls are now setting their sights firmly on the $40 level.

As long as market conditions remain favourable and network fundamentals continue to improve, the path to higher price targets appears increasingly viable.

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