I’ve watched Hyperliquid’s HYPE token go from a meteoric launch to a harsh crash and now a curious rebound. Over the past month, the Hyperliquid price action has been catching my eye. After a brutal start to 2025, HYPE Price is up roughly 55% in April alone, rallying from about $10 in early April to over $20 by the start of May. The big question: Is this just hype, or is the HYPE price truly gearing up for a sustained recovery in May 2025? Let’s dive into the charts, the platform’s activity, and what traders are saying.
Hyperliquid Key Price Points
- HYPE Price Bounce: HYPE surged ~55% in April, reversing a multi-month downtrend and bouncing off strong support around $10. It’s now hovering near $20 as of May 2025.
- Technical Signals: Momentum indicators are bullish (daily RSI ~63) and HYPE trades above key moving averages, but overhead resistance in the $21–$23 zone remains formidable. A breakout above $23 is needed to confirm a strong recovery.
- Platform & Token Usage: Hyperliquid’s on-chain volumes have actually dipped recently (DEX volume fell from $1.3B to ~$527M through April), yet new HYPE staking incentives (lower trading fees for stakers) may be driving renewed interest. With ~330M HYPE circulating out of 1B total, tokenomics rely on community distribution and aggressive buybacks.
- Market Sentiment: Crypto forums are buzzing about HYPE Price May 2025 being a potential turnaround. Social media chatter crowned HYPE the “altcoin of the month”, but some traders remain cautious given the disconnect between price and usage data. The overall sentiment is cautiously bullish but far from euphoric.
Platform Usage & Token Fundamentals
One striking aspect of this HYPE price rally is that it’s happening despite somewhat lukewarm platform usage metrics. Hyperliquid is a decentralized trading platform (a DEX for spot and perpetual futures), and you’d usually expect price and usage to rise in tandem. Instead, *trading volumes on Hyperliquid’s exchange have declined recently even as HYPE’s price climbed.
According to DeFiLlama data cited in recent analysis, weekly DEX volume on Hyperliquid shrank from about $1.3 billion in early April to roughly $527 million by the end of the month. Similarly, weekly volume for Hyperliquid’s perpetual futures contracts is down to ~$21 billion from a peak of $65+ billion per week in late February. In short, fewer trades have been happening on the platform over the last several weeks. This drop in activity could be due to traders taking profits or migrating to other platforms, or just a general market cool-down in trading appetite.
Why, then, is the HYPE token climbing? One clue lies in Hyperliquid’s token mechanics and recent updates. The team implemented a change to their fee structure that rewards HYPE stakers with lower trading fees. In other words, if you hold and stake HYPE, you get to trade on Hyperliquid more cheaply. This encourages heavy traders to buy HYPE to reduce their fees. It’s possible that this incentive is driving demand for the token even as raw volume numbers are down – traders anticipate future savings or increased activity and are positioning themselves accordingly. Moreover, HYPE can be staked for rewards and used in governance of the platform, so there’s a growing utility narrative beyond just speculation.
The token supply and economics are another piece of the puzzle. HYPE launched in late 2024 with a significant airdrop and no VC funding, meaning a large chunk of tokens went directly to the community. Out of a 1 billion maximum supply, about 330 million HYPE are circulating freely as of May 2025. Notably, Hyperliquid’s team allocated around 70% of the total supply to community and users, and they employ an aggressive buyback model: the platform uses 100% of its revenue to buy back and burn HYPE from the market.
This is a very bullish token mechanic in theory, as it creates constant buy pressure when the exchange is generating fees. It’s akin to a stock buyback program, reducing supply and potentially propping up the Hyperliquid price over time. This approach already helped HYPE skyrocket into the top ranks of crypto – at one point it leapfrogged into the top 25 market cap within months of launch.
However, one should remember that a large portion of HYPE tokens are still uncirculated and likely vesting or earmarked for incentives. As those tokens unlock to the market (through user rewards, liquidity mining, etc.), they could introduce sell pressure if demand doesn’t keep up. So far the tokenomics design seems to be holding up: the market cap sits around ~$6–7 billion at the time of writing, putting HYPE roughly in the top 20 projects.
In summary, the fundamentals present a mixed bag: positive incentives and tokenomics fighting against a backdrop of diminished current usage. For HYPE to justify a continued strong recovery, we’d ideally want to see platform activity pick back up. If trading volumes rebound (perhaps as those fee discounts lure traders back), it would reinforce the price uptrend.
If not, the rally might start to look fragile – essentially running on hype (no pun intended) rather than real growth. As an analyst, I’m watching those usage stats in May as a key signal: a healthy HYPE price should be mirrored by healthier Hyperliquid exchange metrics.
Market Sentiment: Cautious Optimism in the Air for HYPE
What are traders and the community saying about HYPE lately? Given the token’s rollercoaster history in just half a year of existence, sentiment has swung from euphoria to despair and now back to cautious optimism. In late 2024, HYPE burst onto the scene (thanks to the big airdrop and innovative model) and hit an all-time high near $35.
By early 2025, sentiment turned sour as the HYPE price tumbled below $15, and many early holders likely capitulated. Fast forward to May 2025, and the tone is shifting upbeat again. Crypto social media is abuzz with HYPE’s resurrection: I’ve seen Twitter posts calling HYPE the “altcoin champion of May” after its impressive April gains. It’s not often you see a top-20 coin rally 50%+ in a month while much of the market watches on in surprise. That has definitely put HYPE on the radar of traders looking for the next momentum play.
Anecdotally, community forums and Telegram groups have more folks discussing Hyperliquid’s features and sharing chart setups for HYPE. The general vibe leans bullish – people are talking about the possibility of new highs if the trend continues.
Even major crypto media outlets have taken note. For instance, CoinTelegraph highlighted HYPE as one of the tokens “still look bullish” going into this week, which only adds to the positive buzz. This kind of coverage can create a self-reinforcing effect: more eyes on HYPE, more FOMO among traders who don’t want to miss the next leg up.
That said, it’s not all rose-colored glasses. Plenty of seasoned traders are urging caution, reminding everyone that sentiment can flip quickly. One metric that skeptics point out is the disconnect between HYPE’s market valuation and its on-chain activity. As noted earlier, the market cap to TVL (total value locked) ratio for Hyperliquid was recently around 20, which is quite high – usually a sign of an overvalued DeFi token relative to usage.
In plainer terms, HYPE might be overpriced if the platform isn’t actually being used enough to justify it. This has led some to speculate that the rally might be driven by short-term excitement (perhaps around that staking perk and people positioning for future developments) rather than a reflection of current fundamentals.
The Fear & Greed Index for crypto is roughly neutral at the moment, indicating that we’re not in a full-on greed phase; investors haven’t thrown caution completely to the wind. That’s probably a good thing – it means there’s still some skepticism tempering expectations, which ironically can prolong a rally as it climbs the “wall of worry.”
In my view, the sentiment around HYPE right now can be summed up as guarded optimism. Many traders (myself included) are optimistic because the price action is positive and the project itself has strong innovations behind it, but there’s also an understanding that HYPE needs to earn its recovery.
If I talk to a HYPE bull, they’ll tell me this is just the beginning of a new uptrend, citing the solid tech and tokenomics. If I talk to a bear, they’ll point to the declining volumes and warn that the Hyperliquid price could easily slip back if the hype fades. Both sides have valid points.
Hyperliquid (HYPE) Price Prediction May 2025
From a technical standpoint, HYPE’s chart is flashing both encouraging and cautionary signals. On the bullish side, the token’s price has broken above its short-term trend indicators. In fact, HYPE climbed back above its 21-day exponential moving average in April, a sign that the short-term trend flipped upward.
It’s also trading above the 50-day and 100-day moving averages, indicating momentum has shifted in favor of bulls. The Relative Strength Index (RSI) on the daily chart is sitting in the low 60s (around 63 as of early May) – firmly in positive territory, though not yet in the extreme overbought zone above 70. This suggests buying momentum is strong but potentially has room to run before hitting overheated levels.
However, there are clear headwinds on the chart. HYPE has run right into a resistance zone in the low $20s. Around $21–$23 appears to be a critical supply area: $21 was identified as a “strong resistance” level by analysts, and roughly $23 aligns with the token’s point-of-control level from volume profiles (where a lot of trading volume has occurred).
Notably, $21.3 is also HYPE’s recent cycle high. The bulls must capture and hold this ~$23 area to open the door toward higher targets like $25 or even $30. So far, each attempt has been met with some selling pressure. On shorter time frames, traders have observed a bearish divergence forming – the 4H RSI made lower highs even as price pushed to $21+. That divergence is a classic early warning that the rally could be losing steam. If HYPE can’t punch through the overhead ceiling soon, a pullback is on the table.
Key support levels to watch sit back down in the mid-to-high teens. After the powerful April run, interim support seems to be around $18 and $17 (recent consolidation zones). Below that, the $14–$15 area is highlighted by chartists as the next support (it aligns with HYPE’s previous breakout point). And of course, the $10 floor – where HYPE Price found its footing in early April – remains the line in the sand for the longer-term uptrend.
A drop back toward $10 would essentially erase the spring gains and signal the recovery has failed. On the flip side, a daily close above $23 with strong volume would be a bullish breakout confirming that Hyperliquid price momentum is truly back. In that bullish scenario, I’d be looking at $25–$26 (near the next projected resistance) as an initial upside target, with $30 (just shy of the all-time high $35) as the more ambitious goal if the trend really heats up.
For now, the technical verdict is that HYPE is in recovery-mode but at a crossroads. The uptrend is young and promising – we have higher lows, improving indicators, and a break of the downtrend line – yet the HYPE price still needs to prove itself above that critical resistance zone before anyone can confidently say it’s a full-fledged bull run again. As a chart-watcher, I’m optimistic but also realistic: Is HYPE ready for a strong recovery? It’s getting there, but it’s not out of the woods quite yet.
Conclusion: Will the HYPE Last?
Bringing it all together, is HYPE ready for a strong recovery? I’d say HYPE is halfway there. The technical chart signals in May 2025 are encouraging but not conclusive – the token has momentum but needs to clear that $23 resistance to really flip the script. The platform’s fundamentals show promise (innovative exchange, savvy token design) yet actual usage needs to catch up to support a long-term rally. Market sentiment is improving, though it’s a mix of excitement and caution, which frankly is healthier than blind euphoria.
In the end, I’m cautiously bullish on HYPE at this stage. The pieces for a strong recovery are falling into place: price momentum, community interest, and token incentives are all aligning. However, I’ll be watching closely to see if HYPE price May 2025 action can sustain itself beyond just a one-month wonder.
