Hyperliquid (HYPE) Price Prediction: Could HYPE Ignite a Major Short Squeeze Towards $70?

After a wave of shakeouts and a clean bounce from the $33 zone, HYPE is flipping the narrative. What seemed like just another pullback is now shaping into something more constructive. With short positions piling up, sellers could find themselves at risk of a potential short squeeze.

While most of the market was seeing long liquidations pile up, Hyperliquid’s $HYPE stood out as the only top-10 asset where short liquidations outpaced longs. For bulls, this kind of skewed positioning is an opportunity. When the market leans too heavily in one direction, it opens the door for sharp counter-moves that can catch late sellers off guard.

Hyperliquid’s HYPE leads the top-10 assets with short liquidations surpassing longs, signaling a potential short squeeze ahead. Source: Stacy Muur via X

If HYPE’s momentum continues building from here, bulls could weaponize these growing short positions into a wave of forced exits, fueling a squeeze that accelerates upside. In a strong trend environment, it doesn’t take much for aggressive longs to push the price just far enough to cause cascading liquidations. Analyst Stacy Muur believes that if this plays out, bears may find themselves on the wrong side.

Momentum around HYPE appears to be shifting quickly, and the $50 mark is now entering the conversation as a short-term upside target. Following the recent liquidation imbalance, where short liquidations overtook longs, the price has started showing signs of strength. If this continues, it sets up a potential move that feeds on short-side pressure. As sellers get squeezed, there can be a slingshot towards the upside.

HYPE community eyes $50 as momentum builds. Source: Gianluca via X

HYPE is showing signs of stabilization after a brief pullback, and the latest 4-hour chart shared by analyst BrutalBTC outlines a clear technical level of interest. Price is currently reclaiming the $34 to $36 support zone, which previously acted as a significant pivot on multiple occasions. This area held during the recent dip and is now being tested again. A strong base here gives bulls a decent chance to build momentum for another leg higher.

HYPE stabilizes near $34-$36 support, setting up a potential breakout toward $40 amid rising short squeeze risks. Source: BrutalBTC via X

What’s interesting is how this aligns with the growing short-side exposure. If price holds above this support and pushes through the lower highs, it could set the stage for a breakout scenario targeting the mid-40s or even higher. As sentiment starts to tilt, this type of consolidation at support can act as fuel, especially if overexposed shorts begin to unwind under pressure.

After bouncing cleanly off the $33 support zone, HYPE is beginning to carve out a textbook retracement-and-continuation pattern. The recent structure shows price reclaiming the 0.786 Fibonacci level. If this holds, the next leg could easily target the 1.618 Fibonacci extension near $70.

HYPE targets $70 as it reclaims key Fibonacci levels, supported by a clear Elliot Wave pattern. Source: 0xDefioor via X

Zooming out to the weekly chart shared by 0xDefioor, the structure is a clean Elliot Wave Pattern. The consolidation after the early June highs didn’t invalidate the uptrend; instead, it reset indicators and flushed weak hands. Now, with open interest climbing and price reclaiming key fib levels, HYPE is in a position where momentum and structure are working together. If bulls hold this level, the $70–$80 range is the next logical move.

Following the recent bounce off the $33 support and a reclaim of the $34 to 36 range, HYPE continues to show quiet but steady strength. Price has respected key Fibonacci levels, and the structure remains intact after shaking out weaker hands. Momentum is gradually shifting back in favor of bulls, and now the on-chain data is starting to reinforce that setup.

Hyperliquid Fund buys an additional $2.1 worth of HYPE. Source: ray tio via X

According to the latest update from ray tio, Hyperliquid’s Assistance Fund added another 54,000 HYPE tokens in the past 24 hours, equivalent to roughly $2.1 million in fresh buys. This steady accumulation suggests that network-backed support remains intact, providing underlying strength to the price.

HYPE is showing clear signs that the tide may be turning in favor of bulls. With growing short exposure and steady buying from the Hyperliquid Fund, the stage is set for a potential short squeeze that could push prices sharply higher.

The key will be whether HYPE can maintain support around the mid-$30s and break through resistance in the $40 to $50 range. If it does, we could see a faster move toward the $70 level and beyond.