Hyperliquid [HYPE] experienced a significant drop to $40, prompting whales to enter the market for accumulation.
A whale sold 1,733 XAUT for $7.83 million, then deposited $10.2 million into HyperLiquid to purchase 103,636 HYPE worth $4.7 million. This whale also opened a 5x leveraged long position on HYPE, indicating bullish sentiment.
Another whale deposited $4.87 million into HyperLiquid to acquire 102,055 HYPE. Combined, these whales accumulated 205,691 HYPE valued at $9.57 million, showcasing confidence in the market during a period of weakness.
Impact on HYPE Price
The whale accumulation had a notable impact on HYPE’s price movement, driving it from $40 to a high of $46 before a slight retracement.
Currently, HYPE is trading at $45, marking a 7.5% increase on the daily charts. The price surge has strengthened the upside momentum significantly.
The Stoch RSI reaching 74, close to the overbought zone, along with the Bulls vs. Bears indicator turning positive, indicates strong buyer pressure and a shift in market dynamics.
These indicators suggest that buyers, largely influenced by whales, have outpaced sellers, leading to a potential uptrend.
If the positive market sentiment persists, HYPE is likely to surpass $47 and aim for long-term resistance at $50.
Challenges for Hyperliquid
While some whales seized the opportunity to accumulate during the market dip, others succumbed to panic and closed their positions as prices fell.
A whale reportedly made a $2.8 million profit after two months of accumulation, indicating a mix of profit-taking and market strength on the demand side.
Despite the price rebound, profit-taking behavior persists, with increased selling activity observed on exchanges.
Although the Spot Netflow for Hyperliquid has been positive for two consecutive days, reaching $2.8 million, up from $1.4 million the previous day, increased profit-taking can potentially weaken the market.
Historically, heightened profit-taking by whales following a market recovery can intensify bearish pressure, potentially leading to another downward trend if demand wanes.
With active whale activity on both selling and buying fronts, Hyperliquid is in a pivotal position, where the next move depends on the dominant side’s resolve.
For the time being, HYPE is expected to trade within a range as buyers and sellers vie for control of the market.
Key Takeaways
- Two major Hyperliquid whales accumulated 205,691 HYPE, valued at $9.57 million, during a market downturn.
- HYPE surged from $40 to $46 before settling at $45 amidst whale accumulation, but potential profit-taking poses a threat to this recovery.