• Hyperliquid hovers above $74 on Thursday, hovering near its all-time high levels.
• Institutional demand for HYPE shows steady growth, with ETF inflows nearing $140 million.
• Grayscale’s entry to undercut Bitwise and 21Shares HYPE ETF adds to the market demand.

Hyperliquid (HYPE) price sustains an upward trend near its all-time high of $75.76 on Thursday after posting 80% gains in May, while Bitcoin (BTC) retraces below $65,000, triggering a market-wide panic. The massive inflows of roughly $135 million into the newly launched HYPE-focused ETFs last month reflect growing institutional interest, fueling the HYPE rally.

Momentum remains swift, with the long-term outlook suggesting potential to surpass the $100 mark, but risks are overstretched as HYPE enters price discovery mode.

Institutional craze for the “everything exchange” with expanding volumes, offerings 

Bitcoin ETFs recorded $396.60 million in outflows on Wednesday, bringing total outflows to $4.37 billion over the last 13 days, reinforcing reduced institutional interest in the King Crypto. On the other hand, data shows HYPE ETFs recorded $2.99 million in inflows on Wednesday, bringing the total to $140 million in 15 consecutive days of inflows.

This suggests that the rising inflows in HYPE ETFs reflect a capital rotation to an exchange token, likely driven by Hyperliquid’s growing revenues and new product offerings. Additionally, Grayscale's upcoming HYPE-focused ETF, to be launched on Thursday, reaffirms the growing institutional demand for HYPE.

Hyperscreener data shows the HIP-3 protocol, which offers a 24/7 trading service linked to tokenized Real World Assets (RWAs) like listed and pre-IPO stocks, and perpetual futures of commodities, recorded a total value of $62.63 billion in May, marking its third monthly volume above $60 billion. 

Matt Hougan, the Chief Investment Officer (CIO) of Biwise, the largest HYPE ETP with $107 million in Assets Under Management, highlights that the crypto market maturity is a driving factor behind Hyperliquid’s growth. 

“This is one reason why crypto investors are increasingly focused on revenues and enthusiastic about protocols like Hyperliquid that have clear fundamentals. Investors still believe in crypto, but now that it’s a contrarian bet, they favor fundamentals over vibes,” said Hougan in an official note on Tuesday.

Will Hyperliquid hit $100?

Hyperliquid hovers above $74.00 at press time on Thursday, extending a steep advance with five consecutive weeks of upward trend. HYPE maintains a near-term bias firmly bullish despite increasingly stretched conditions, with the Relative Strength Index (RSI) at 82 on the weekly chart holding deep in overbought territory. Meanwhile, the Moving Average Convergence Divergence (MACD) remains positive above its signal and an expanding bullish profile, suggesting strong but potentially overextended upside momentum.

On the weekly timeframe, the HYPE rally approaches the 127.2% Fibonacci extension level, measured over the downswing from $59.45 to $20.51, at $79.40. A decisive close above this level could open the path above the $100 psychological mark, targeting the 161.8% extension level at $114.75, coinciding with an overhead trendline.

On the downside, immediate support is seen at the prior Fibonacci high near $59.45, with further demand expected around the 78.6% retracement at $47.34.

(The technical analysis of this story was written with the help of an AI tool.)