HYPE Rally Gains Steam as ETF Demand Builds

HYPE Extends Its Q1 Recovery

HYPE traded on shaky footing around the middle of Q1. The token notched up just 0.8% in February and then soared 17% in March, closing 44% higher on the quarter.

The price action has advanced another 40% since the start of Q2.

Bitwise ETF Opens Regulated Access

In mid-May, the first HYPE-backed spot ETF – launched by Bitwise – began trading on the NYSE, giving institutional investors regulated access to the asset.

According to Bitwise, HYPE looks undervalued as investors are not fully pricing in the scale of the underlying market or the value of the platform itself.

Bitwise also said it will allocate roughly 10% of the ETF’s fee revenue towards promoting the token – a direct price support mechanism.

Crypto investors also took note of the fact that 21Shares launched its own HYPE-backed ETF.

Regulatory Pressure Remains a Risk

On the downside, CME Group called for tighter oversight of Hyperliquid, citing concerns that the platform could be used to manipulate oil and other commodity prices.

Bulls Target $59.4 and $70

Technically, sentiment surrounding HYPE has changed dramatically since our last overview of the asset.

Previously, we anticipated that the pullback would gain traction after a break below $25.6. Nonetheless, not only did the price action hold above that level – it never even came close to retesting it.

In early March, the bulls mustered a rebound towards the 200-day MA and then breached it after a brief technical correction.

The trend has thus retraced to a sustainable upward track.

Notably, the HYPE bulls currently hold the upper hand and are setting their sights on several targets.

Specifically, a breakout of $50 would push the price action towards $59.4 in the interim and $70 in the longer term.