Hyperliquid's native token HYPE slipped below $70 on Thursday, snapping a blistering run that saw it gain 80% in May. The move came as Bitcoin dropped under $63,000, dragging the broader market into risk-off mode. Despite the pullback, institutional demand for HYPE didn't let up — ETFs tracking the token posted $2.99 million in inflows Wednesday, extending a streak of positive flows to 15 consecutive days and pushing the total to roughly $140 million.
Grayscale enters the ring
Grayscale launched its own HYPE-focused ETF on Thursday, a clear signal that institutional players are betting on the protocol's long-term prospects. The move follows a blockbuster May for Hyperliquid's HIP-3 protocol, which generated $62.63 billion in trading volume — the third month in a row above $60 billion. HYPE was trading above $67 at the time of writing, still riding a five-week rally that has captured the attention of both retail and institutional investors.
Bitcoin ETFs keep bleeding
The contrast with Bitcoin ETFs is stark. While HYPE funds are gorging on inflows, Bitcoin ETFs recorded $396.6 million in net outflows on Wednesday alone. Cumulative withdrawals over the last 13 trading days have reached $4.37 billion. The selling pressure has pulled Bitcoin below key levels, and the broader crypto market is feeling the strain. This isn't just a HYPE story — it's a market rotating out of blue-chip crypto and into newer, high-beta bets.
Overbought warning lights
The rally has pushed HYPE's relative strength index to 82, well into overbought territory. The MACD remains positive with expanding bullish momentum, but analysts caution that the move looks stretched in the near term. Key resistance sits at the 127.2% Fibonacci extension of $79.40, with the psychological $100 mark and a 161.8% extension at $114.75 making up the next targets. On the downside, support stands at $59.45 — a previous Fibonacci high — and $47.34. The long-term outlook above $100 remains intact for many, but the current price action suggests a breather could be coming.
Whether HYPE consolidates above $67 or retests lower support will depend on how the broader market digests the ongoing rotation. With Grayscale now in the mix and ETF flows still positive, the stage is set for a tug of war between short-term overextension and long-term institutional accumulation.
