Hyperliquid’s native token, HYPE, is turning heads again after a powerful 105% rally in just one month. With its price reclaiming the $20 level and pushing higher to $21.18, traders are increasingly bullish, hoping to see the token revisit its all-time high of $35.02. The momentum is building quickly, thanks to strong technical indicators, rising trading volume, and significant ecosystem updates.

At the core of this rally is a resurgence in market confidence, partly triggered by Hyperliquid’s major updates. On May 5, the protocol introduced a new fee and staking system. This feature allows users to stake their HYPE tokens and receive trading fee discounts ranging from 5% to 40%, depending on the staked amount. The program incentivizes deeper platform engagement, offering linked account benefits across both spot and futures markets, with spot volume even counting double toward tier calculations. The result is more liquidity and broader participation—two key ingredients for any sustained rally.

Another boost came from the integration of Ethena Labs’ USDe stablecoin into Hyperliquid’s DEX and HyperEVM blockchain. With this addition, users holding at least 100 USDe on the HyperCore platform now qualify for daily airdrop rewards. This functionality not only rewards users but also drives liquidity toward the USDe ecosystem, deepening Hyperliquid’s role in the broader DeFi space.

Technically, HYPE is now in a textbook bullish setup. After rebounding from a low near $10, the token has formed a clean ascending triangle pattern. This structure is typically a precursor to a breakout move. The support base around $17.5–$18.0 has held firm on multiple dips, while resistance looms in the $26–28 zone. Interestingly, this resistance area aligns with the 0.618–0.786 Fibonacci retracement levels, drawn from the $35 ATH down to the $10 low—making it a critical point to watch.

Indicators also support the bullish case. The 20-day and 50-day exponential moving averages (EMAs) have crossed upward, suggesting a trend shift in favor of the bulls. The Relative Strength Index (RSI) is at a healthy 66—showing strong buying momentum without signaling overbought conditions. Meanwhile, the Moving Average Convergence Divergence (MACD) confirms positive sentiment, as it stays in bullish territory.

On-chain data strengthens the bullish outlook. Trading volume spiked to $5.27 billion on May 6, almost doubling from April’s levels when momentum had cooled. This rebound in volume reflects genuine interest and liquidity returning to the token, not just speculative price action.

Looking at liquidation data, there’s potential for short squeezes that could add fuel to the rally. Historically, long liquidations plagued the $50K–$82K zone in Bitcoin equivalents, with heavy losses forcing bulls out of positions. But the current pressure is building from the short side. Between $103K and $142K (in BTC equivalent), the market is loaded with shorts—some of them heavily leveraged. A breakout above $28 could trigger liquidations of these shorts, rapidly pushing HYPE toward its all-time high around $35.

With bullish technicals, growing volume, and strong fundamentals, HYPE appears well-positioned to challenge the $26–28 resistance in the coming weeks. If it breaks that level with conviction, analysts believe a retest of the $33–35 zone is likely within the next four to six weeks. The market is watching closely, and if momentum holds, HYPE could soon be rewriting its price history.