The decentralized perpetual exchange landscape is witnessing a significant shift as Hyperliquid (HYPE) continues its impressive ascent in May 2026. Following the recent activation of the HIP-4 protocol, which introduced native prediction markets to the HyperEVM, the HYPE token has become a focal point for traders looking for both utility and price appreciation.
The daily chart for Hyperliquid (HYPE) reveals a well-defined ascending structure that has been in play since early 2026. After a period of consolidation around the $23.00 support zone in January, the asset entered a steady markup phase, characterized by higher highs and higher lows.
The recent price action isn't just a technical fluke. Hyperliquid's move into prediction markets via HIP-4 has significantly increased the token's utility. Unlike competitors like Polymarket, Hyperliquid requires users to stake 1 million HYPE to launch a new event market. This mechanism creates a massive "supply sink," effectively removing large quantities of HYPE from the circulating supply.
Furthermore, the protocol’s aggressive buyback program remains a primary driver. Funded by trading fees from its high-volume perpetual DEX, the Hyperliquid Assistance Fund consistently acquires HYPE from the open market, providing a "floor" for the price even during broader market corrections.
The combination of native L1 finality and zero gas fees makes Hyperliquid a formidable competitor to traditional centralized exchanges (CEXs).
As we move through May 2026, the primary focus for HYPE traders is the $45.00 to $46.00 range. A daily candle close above this level would likely trigger a FOMO-driven rally toward the $50.00 milestone.
However, investors should remain cautious of the upcoming token unlock scheduled for May 6. While the protocol’s buybacks have historically absorbed selling pressure, a large influx of supply could lead to a temporary retest of the $38.00 support level.
