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

BlockBeats News, June 1st, Hyperliquid's native token HYPE has surged over 30% in the past 5 days, reaching a price of over $74 and hitting a new all-time high. Analysis suggests that HYPE has broken out of a Bull Pennant formation, with a potential upside target of $105, representing a further 45% increase from the current price.

From a technical perspective, after a rapid rise in late May, HYPE formed a flagpole structure, followed by a period of consolidation in a triangle pattern, and recently broke out above the upper boundary on significant volume. Based on the Bull Flag pattern, the theoretical target price is around $105.3, expected to be reached sometime between June and July.

Derivatives market data also indicates a bullish sentiment. The data shows that open interest in Hyperliquid's futures contracts has reached a new high of $3.5 billion, a substantial increase from around $1.4 billion at the beginning of the year. Additionally, the funding rate remains positive, indicating an overall bullish market sentiment.

Since May 20th, the total amount of liquidated short positions for HYPE is approximately $126 million, significantly higher than the $68.85 million for long positions, highlighting a pronounced "short squeeze" effect during the price rally. If the upward trend continues, it could further trigger short-covering and accelerate the price surge.

On the fundamental side, according to DefiLlama data, Hyperliquid's application revenue over the past 30 days has reached $57.9 million, surpassing Ethereum and becoming the second-largest blockchain revenue network after Solana. The protocol allocates 99% of its transaction fee revenue to an "Assistance Fund" for the public market buyback of HYPE, seen as a key mechanism to support the token's value.

Furthermore, the U.S. Commodity Futures Trading Commission (CFTC) recently publicly acknowledged the role of perpetual contracts in price discovery and risk management, bringing positive expectations for Hyperliquid, whose core business revolves around perpetual contract trading. At the same time, the HYPE ETF launched in the U.S. market has attracted approximately $122 million in net inflows since its listing on May 12th, indicating a growing institutional investor demand for exposure to HYPE.