HYPE Looks Positioned to Retest Its ATH of $35

Hyperliquid (HYPE) has made a strong recovery, rising 105% in one month to trade above the critical $20 mark again.

At press time, HYPE is priced at $21.18 (+5.39% daily) with a market cap of $7.07B and 24h volume of $127.66M (+47.19%). The coin reached an all-time high (ATH) of $35.02 on Dec 21, 2024 (around ~40% off ATH), and several traders are hoping for a portfolio full reversal.

HYPE’s momentum is attributed to the following catalysts:

Hyperliquid introduced a fee and staking system on May 5. Users can now stake their HYPE coins to receive a trading fee discount of between 5% and 40%, depending on the amount staked.

The fee discount uses different rates for futures and spots, and spot volume counts as double for fee tier calculations. A big upgrade comes from linking staking and trading accounts, so the discounts apply to any trading account and will incentivize all traders to engage and provide liquidity to the platform.

Ethena Labs has integrated its USDe stablecoin into Hyperliquid’s DEX, and integrated USDe with its HyperEVM blockchain. Users who hold 100+ USDe on HyperCore are now eligible to earn daily rewards for holding USDe in their accounts that automatically air-drop to their spot accounts!

This integration allows for better liquidity as it builds asset use cases for USDe, and increases interest from investors in the entire Hyperliquid crypto ecosystem.

Chart: TradingView

Key Highlights:

Main support zone: $17.5–18.0 has held well during past dips. Key resistance zone to watch for breakout: $26–28.

This zone also coincides with the 0.618–0.786 Fib levels (Fibonacci retracement drawn from the previous high at $35 to the recent low at $10).

Chart pattern: Recently completed a V-shaped recovery and is now forming an ascending triangle—a bullish chart pattern.

Breakout point: Pay close attention to a candle that can fully close above the $26–28 zone with strong volume.

If sellers fail to defend the 0.618 Fib and 100% Fib levels, and buyers can push above the triangle, the next target is around $33–35 (previous all-time high).

At the current pace, this move could happen in the next 4–6 weeks.

Liquidity & Liquidations: How On-Chain Data Confirms HYPE’s Breakout Potential

Volume Surge: Confidence Rebuilding

HYPE’s on-chain volume tells the story of a market regaining strength. After its big run earlier in the year, volume cooled to around $2.39B by April 5—showing a pause in trader interest and liquidity as price corrected.

But on May 6, daily volume jumped back to $5.27B, marking a strong resurgence of participation. This confirms that the current uptrend is supported by real buying power, not just a weak technical bounce.

Liquidation Heatmap: Historical & Current Pressure Zones

The liquidation map shows how traders have been positioned. During past corrections, especially after its all-time high, HYPE saw heavy long liquidations between $50K–$82K BTC equivalent, with a peak of 886 BTC liquidated at $82K.

These events reveal where bulls were forced out, marking danger zones in bearish scenarios. Now, the tables are turning: shorts are heavily stacked between $103K–$142K, with recent spikes (e.g., 722 BTC at $103K) showing that many are betting against further upside.

If HYPE clears the $26–28 resistance, these shorts could get squeezed fast—likely triggering a surge toward the $33–35 ATH area.