After Hyperliquid [HYPE] dropped to a low of $40, whales rushed into the market to accumulate.
According to Onchain Lens, a whale sold 1,733 XAUT for $7.83 million before depositing $10.2 million into HyperLiquid and purchasing 103,636 HYPE worth $4.7 million. Shortly after, the whale opened a 5x leveraged long position on HYPE, signaling bullish sentiment.
Another whale deposited $4.87 million into HyperLiquid to acquire 102,055 HYPE. Together, the two whales accumulated 205,691 HYPE valued at $9.57 million. Notably, whales accumulating amid market weakness showed confidence in the market.
Any impact on HYPE?
The whale accumulation had a significant impact on HYPE price movement. The altcoin jumped from a low of $40 to a high of $46 before retracing.
At press time, HYPE traded at $45, up 7.5% on the daily charts. With the price hike, the upside momentum strengthened significantly.
As a result, the Stoch RSI rose to 74, nearing the overbought zone, reflecting strong buyer pressure. At the same time, the altcoins Bulls vs. Bears indicator flipped positive, confirming a shift in market dynamics.
Taken together, these two indicators suggested that buyers largely driven by whales managed to displace sellers. Often, such a market shift has followed strong upside momentum.
If market sentiment holds, HYPE is likely to flip $47 and target long-term resistance at $50.
Hyperliquid still faces elevated profit-taking
While some whales took the dip to accumulate, some also panicked and closed positions as the market dropped.
AMBCrypto earlier reported that a whale capitulated after two months of accumulation, taking a $2.8 million profit. Although this whale rushed to cash out, the market showed relative strength on the demand side. Even with the price rebounding, this profit-taking behavior has continued. Looking at exchange activity, sellers have significantly increased spending.
However, the altcoin’s Spot Netflow has been positive for two days in a row, indicating that exchange inflows will increase. At press time, the Netflow was $2.8 million, up from $1.4 million the previous day.
Historically, increased profit-taking by whales, particularly when an asset recovers from a dip, weakens the market. As a result, bearish pressure rises and often leads to another dip if demand fails to keep pace.
Under these circumstances, with whales active on both the sell and buy sides, Hyperliquid is at a crossroads. Thus, the next move depends on which side shows greater determination.
For now, HYPE is most likely to trade within a range, as bulls and bears fight for market control.
Final Summary
- Two Hyperliquid whales purchased 205,691 HYPE, worth $9.57 million, amid the market dip.
- HYPE rebounded from a $40 slip to $46 before retracing to $45 amid whale accumulation, but profit-taking threatens this recovery.
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