Hyperliquid's HYPE token has recently broken out of a bull pennant pattern, suggesting a potential price target of $105.30, approximately 45% higher than current levels. This breakout follows a significant late-May rally and is supported by a record open interest in derivatives, which has surged to $3.5 billion. The positive market sentiment is further underscored by a consistent positive funding rate, indicating bullish demand among traders. However, the relative strength index is above 77, signaling that HYPE may be overbought, which could lead to a brief consolidation or correction. Since May 20, the token has seen about $126.28 million in short liquidations, indicating a short squeeze as bearish traders close positions amid rising prices. Additionally, Hyperliquid has surpassed Ethereum to become the second-largest blockchain by app revenue, generating $57.9 million in the past month. The recent launch of US-listed HYPE exchange-traded funds (ETFs) has also attracted $122.2 million in net assets, reflecting growing institutional interest in the token.