Hyperliquid (HYPE) faced a price decline, trading near $41.31 after two days of losses, even as a prominent investor injected $3.02 million into the market by purchasing over 71,000 HYPE tokens at around $42. This sizeable buy highlights a strategic bet on the asset amid heightened volatility and geopolitical tensions affecting broader crypto markets.
While this whale's purchase points to growing demand, market data reveals mixed sentiment. Analytics from Nansen show that the top 100 HYPE holders collectively trimmed their positions by nearly 18% within 24 hours, signaling fear and potential panic selling among some investors. Meanwhile, derivatives data from CoinGlass report a negative funding rate, indicating that traders are largely expecting further price declines, with strong short positions outweighing longs.
On the charts, HYPE approaches a critical support zone near $39.40, a level that has held since early April. The asset’s longer-term trend remains upward, spanning several months of higher highs and lows since a low near $20.90 earlier in the year. Analysts note that retaining this support could pave the way for a rebound. However, dropping below it risks shifting momentum toward bearish territory, possibly pushing prices down to a secondary support near $36.
The current strength of HYPE’s trend appears to be weakening, as the Average Directional Index (ADX) stands below the key threshold, reflecting dwindling momentum. With significant liquidation points identified at $40.47 below and $42.67 above, intraday traders are closely watching these levels as indicators of near-term direction.
This combination of a major whale purchase amid declining prices and cautious broader market positioning illustrates the tension within Hyperliquid’s current market dynamics. Whether the whale’s move will stabilize HYPE or if the asset will succumb to further selling pressure largely depends on its ability to hold critical support levels in the coming sessions.