Hyperliquid (HYPE) continued to attract capital as the price surpassed $67 and entered new record territory. Typically, such breakouts require strong demand, and recent price discovery suggests that buyers have continued to absorb supply despite high valuations.
However, new highs also encouraged early holders to take profits. A Genesis participant, for example, who accumulated 1.5 million HYPE near $4.29, started earning around $95 million.
Previously, the wallet withdrew 500,000 HYPE, worth around $33 million, before transferring 211,001 HYPE, worth almost $13.8 million, to Coinbase.
This development is important because dormant supply returns to the market. And yet the broader structure has been constructive.
In fact, the holder still controls 1.285 million HYPE worth over $85 million, limiting immediate supply expansion.
Meanwhile, HYPE continued to trade at record highs, suggesting new liquidity could absorb profit-taking pressure. The next test is whether demand remains strong enough to offset further distribution as price discovery continues.
A whale bets against Hyperliquide’s rally
HYPE the rally continued to attract attention as price discovery pushes the token to new all-time highs. However, rising prices have also encouraged traders to test whether the momentum can hold.
Against this backdrop, a whale opened a combined $12.8 million short position in HYPE and Lighter. (BED). The position includes 156,120 HYPE worth approximately $10.2 million with 10x leverage and 1.97 million LIT worth nearly $2.6 million with 5x leverage.
The move suggests that some sophisticated players may be expecting a slowdown in recent gains. And yet, the market has yet to confirm this view. At press time, the positions already represented nearly $200,000 in unrealized losses as HYPE held above $65.
This creates a crucial setup. If demand continues to absorb profit-taking and bearish bets, forced hedging could prolong the rally. Otherwise, weakening momentum could validate the whale’s contrarian position and increase volatility.
HYPE Rally Faces Its Biggest Absorption Test
The hyperliquid rally continued to attract new capital, despite increasing profit-taking near record levels. For example – Since May 12, cumulative ETF inflows have increased from $1.17 million to $100.48 million, reflecting sustained investor demand.
The momentum grew further as daily inflows peaked at $25.46 million on May 20. As a result, the total net assets increased from $30.82 million to $117.38 million in a matter of days. However, the balance remains fragile.
Whales have started to take profits while bearish positions emerge in derivatives markets.
If new capital continues to absorb distribution, HYPE could expand price discovery. Otherwise, the slowdown in demand could gradually slow down the momentum of the recovery.
