Hyperliquid Forecast: HYPE Breakout Puts $100 in Sight

Hyperliquid (HYPE) is currently the best-performing crypto asset in the top 10 with a year-to-date (YTD) gain of 218% as the popular trading platform continues to make progress to compete with titans of the TradFi industry.

The past week was quite bullish for this layer-one blockchain, as President Donald Trump said during a meeting with crypto execs at the White House that the head of the Commodity Futures Trading Commission was working on the details to give American legal access to the decentralized exchanges.

Mike Selig, the CFTC’s Chairman, rapidly commented that he will provide additional details about new regulations later. The result was a strong jump in the price of HYPE, pushing the token from $58 to a new all-time high of $83.4 in just five days.

Paired with the U.S. Securities and Exchange Commission (SEC) proposed rules for the crypto sector and the Treasury Department’s decision to double its buybacks, the market has multiple positive catalysts that could push the price of this altcoin to unprecedented heights.

Despite the news, net inflows to Hyperliquid exchange-traded funds (ETFs) in the United States are still relatively muted, with only $15 million being poured into these vehicles so far this month.

This indicates that institutional players are not yet buying into this bullish narrative, perhaps as there needs to be more evidence that the CFTC is willing to fast-track the platform’s adoption by allowing American individuals and companies to access it without restriction.

Hyperliquid’s Trading Volumes and Open Interest (OI) Recover

Turning to on-chain data, multiple on-chain metrics are flashing bullish signals that indicate higher usage of this DEX. First of all, last week’s volumes spiked to their highest level since the last week of May at $82 billion.

The last time that volumes were that high, HYPE surged to an all-time high of around $75. Hence, if volumes continue to increase, we could see a strong reaction in the market that pushes the token’s price to new record levels.

Moreover, open interest (OI) recovered strongly this month, surging from $5.5 billion in late July to $7.4 billion the week before last for a 35% increase. This indicates that traders are coming back to the market at a point when the latest bear market seems to have come to an end.

Finally, liquidations spike to an impressive total of $3.2 billion during the second week of August, primarily driven by $2.2 billion in BTC liquidations.

HYPE to $100? Landmark Target Seems Attainable If U.S. Launch Materializes

This purpose-built layer-one blockchain has demonstrated its resilience during the most chaotic market conditions, in contrast with the typical malfunctions that centralized exchanges tend to experience during periods of peak volatility.

Turning to the daily chart, we can see that HYPE broke past its $75 ceiling on August 22 with above-average trading volumes, indicating a solid breakout.

This key level could now act as support if the price pulls back. However, we expect the continuation of this rally toward the $100 level at least, as this is a key psychological threshold that the market will likely aim for.

The U.S. embrace of Hyperliquid could mark the beginning of a new bullish phase for the project’s native asset, as this would open up a huge market and put this DEX in the crosshairs of the world’s largest financial institutions.