Following a significant drop, Hyperliquid managed to defend the $40 level and bounced back to $42.80. As the price of HYPE hovers around $42, some large investors have chosen to cash out, possibly to secure their profits.
According to Onchain Lens, one whale sold 213,419 HYPE for $8.93 million at a rate of $41.84 per HYPE. Following the sale, the whale made a profit of $2.8 million.
This particular whale has been actively buying over the past two months, acquiring 467,188 HYPE for $16.63 million. With an average purchase price of $35.59, the entire holding is currently in a profitable position.
Even after the recent sale, the whale still holds 253,769 HYPE valued at $10.5 million.
The decision of the whale to cash out following HYPE’s retracement from $47 indicates a reluctance to hold positions for extended periods.
Steady Market Demand for Hyperliquid
Despite profit-taking by the aforementioned whale, the demand for HYPE remains stable, suggesting ongoing accumulation.
Investors have continued to inject funds into Hyperliquid, with Daily Inflows totaling $17 million according to Defillama data.
Although lower than the $51 million recorded three days ago, this indicates that investors maintain a positive outlook.
Exchange activity further supports this demand, with buyers actively accumulating during price dips.
Data from CoinGlass reveals a net outflow of $63.7 million from exchanges, contrasting with $61.1 million in the previous 24 hours. This has led to a negative Spot Netflow for HYPE, continuing a trend seen over the past two weeks.
Increased capital inflows can help absorb selling pressure, stabilizing the market and setting the stage for potential price increases.
Can the Demand Offset Market Pressure?
After dropping to $40, buyers stepped in, bought the dip, and defended the crucial support level. This led to a resurgence in upward momentum.
The Relative Strength Index (RSI) indicated a reversal, climbing from 50 to 52. This suggests that buyers successfully countered selling pressure, absorbing it effectively.
The SMI Erogdic Indicator (SMII) also remained above its signals, further confirming the resurgence of bullish pressure. These momentum indicators suggest a strong return of buyers, successfully countering selling pressure.
Given that capital inflows continue, HYPE is likely to recover from the recent decline and target $45.
However, if the trend of whales realizing profits persists and demand from other market participants remains steady, Hyperliquid may experience sideways movement, with HYPE trading in the range of $41 to $44.
Key Takeaways
- A whale in Hyperliquid sold 213,419 HYPE for $8.93 million, securing a profit of $2.8 million.
- HYPE successfully held the $40 support level and rebounded to $42 amidst signs of recovering demand.