Hyperliquid (HYPE) Price Prediction: Burn Mechanism Fuels Supply Squeeze Towards $60

Hyperliquid is consolidating near key support, with participants eyeing a potential breakout above $50 that could fuel a push towards the $60 target.

Price action has cooled from its recent surge, but instead of correcting deeper, buyers have stepped in to defend key levels. This kind of resilience is a healthy sign. At the same time, sentiment around HYPE is shifting from short-term speculation to longer-term confidence.

Hyperliquid’s current price is $43.58, down -8.09% in the last 24 hours. Source: Brave New Coin

Hyperliquid Eyes a Clear Path Towards $60

Hyperliquid is entering an important phase, with esprisi0 pointing toward a clean runway for a move toward the $60 mark. The token has managed to stabilize after its recent run, showing resilience as buyers continue to defend local supports. This kind of behavior signals that the market is not just reacting to short-term hype but instead building a sustainable base.

Beyond the technicals, the broader narrative for HYPE is equally compelling. Hyperliquid has steadily positioned itself as one of the more reliable performers in DeFi. With liquidity deepening and confidence rising, the path to $60 feels less like speculation and more like a natural extension of the current price momentum.

Hyperliquid’s Burn Mechanism Strengthens Supply Dynamics

Fresh data from Tobias Reisner highlights a notable uptick in Hyperliquid’s burn activity, with more than 3,200 HYPE removed from circulation in just 24 hours. Each token burned reduces circulating supply, tightening the market and giving existing holders stronger leverage as demand continues to grow.

Hyperliquid burns over 3,200 HYPE in 24 hours. Source: Tobias Reisner via X

With supply consistently contracting while traders defend support zones, upward momentum becomes easier to sustain. The reduced float means buyers don’t need massive inflows to push HYPE higher, and that dynamic is already reinforcing the path toward the $60 level.

Liquidation Zones Position Hyperliquid for Its Next Breakout

The latest liquidation heatmap from HYPEconomist adds an interesting angle to Hyperliquid’s setup, showing a heavy cluster of liquidations stacked around the $50 level. This zone now becomes more than just a psychological round number; it’s a technical battleground where market pressure could accelerate quickly. If buyers push the price into that range, shorts sitting at $50 could face a squeeze, creating a sharp upward move fueled by forced liquidations.

Hyperliquid’s liquidation heatmap shows a heavy $50 cluster, setting the stage for a potential short squeeze breakout. Source: HYPEconomist via X

This liquidity pocket ties directly into HYPE’s ongoing narrative of tightening supply and strengthening momentum. With recent burns already reducing available float, a liquidation-driven breakout would amplify the bullish structure. The alignment of on-chain contraction and technical pressure suggests that once $50 breaks, price action could accelerate faster towards $60 milestone.

Whale Accumulation Signals Strong Confidence in Hyperliquid

On-chain data shows a mysterious whale has deposited $42.9 million USDC since August 14 and has been steadily accumulating over 682,000 HYPE tokens. This remains a major development favoring Hyperliquid’s bullish narrative.

Beyond sheer numbers, consistent whale buying often acts as a floor for price action, absorbing sell-side pressure while creating the foundation for more sustainable upside moves.

Whale accumulates 682,000 HYPE with $42.9M USDC inflows, reinforcing Hyperliquid’s bullish setup. Source: Hyperliquid News via X

If this buying trend continues, it not only validates bullish momentum but also increases the likelihood of a breakout above the $50 liquidation zone. In effect, whale demand plus tightening supply is setting up a scenario where resistance levels may fall more quickly than expected, paving the way toward the $60 target.

Hyperliquid Price Prediction: Channel Structure Points to $60 Test

The latest chart from Jesse Peralta shows Hyperliquid trading firmly within a rising parallel channel that has guided its trend since May. Price has been respecting both the upper and lower bounds of this channel, with each retest of support sparking a new wave higher. Currently, HYPE Hyperliquid price is approaching the supportive region of the trend, and if it continues to hold the channel around $42 to $40, the technical setup remains open to attempt the $60 target.

Hyperliquid maintains its rising channel, with support at $42–$40 keeping the path open toward a $60 breakout. Source: Jesse Peralta via X

Final Thoughts

Hyperliquid is now sitting at a pivotal point where both technicals and fundamentals appear to be working in its favor. The rising channel structure, steady whale accumulation, and consistent burn mechanism all highlight a market that’s tightening supply while building demand at the same time.

If bulls can clear the $50 liquidation cluster, momentum could quickly accelerate, opening the door for a run towards the $60 target.