Hyperliquid whales have recently left the market. Strangely, whales that return to the market during a period of increased volatility reap profits.
According to Onchain Lens, a hyperliquid whale called Cooker.hl jumped into the market and sold 45,786 HYPE for $1.8 million in USDC.
The whale made this sale at an average price of $39.39 and subsequently deposited the proceeds on Coinbase.
The whale’s exit below $40 signaled fear, with investors expecting further losses. This perception comes because HYPE has traded below these price levels for three consecutive days.
Often, when a whale decides to cash out while the market is weak, the downside risk intensifies.
HYPE dynamics remain bearish
Interestingly, even though a major investor left the market, HYPE managed to defend its key levels.
To begin with, Hyperliquid has been trading in a downtrend since the uptrend collapsed to $42 five days ago. In doing so, the altcoin fell to a low of $38.8.
After days of decline, the market seems to have regained its balance and rebounded. At press time, Hyperliquid was trading at $40.7, up 4.12% on the daily charts, signaling a potential trend reversal.
Despite these gains, bearish momentum remains extremely high. Looking at the Aroon indicator, the Aroon Down line is currently above the Aroon Up line at 92%.
When Aroon Down reaches high levels, it suggests that the downtrend is stronger, with lows occurring more frequently than highs. Thus, sellers exercise significant control over the market.
At the same time, the Stochastic Momentum Index (SMI) fell further into the negative zone, confirming the strength of the downtrend.
Taken together, these two indicators suggest that HYPE will likely fail to hold $40 and fall to $38, making the rebound short-lived. To ensure a trend reversal, HYPE needs a daily close above $40, paving the way for a move towards $42.
Why is the Hyperliquid market weakening?
The lows have recently surpassed the highs as most perpetual market participants have withdrawn their capital. Data from Defillama showed that perpetual volume fell by more than $1 billion, from $7.6 billion to $6.3 billion.
Although reduced activity in perpetuals has stabilized the market in the past, it tends to react negatively in the short term.
Additionally, the market decline coincided with an increase in the volume of futures sales. Over the past three days, for example, hyperliquid futures saw $640 million in inflows, compared to $651 million in outflows.
As a result, the altcoin’s Futures Netflow fell 5% to -$11 million, suggesting more positions have been closed recently. HYPE has generally performed poorly when the derivatives market has experienced reduced speculation, which helps explain current market conditions.
Final Summary
- Hyperliquid whale Cooker.hl sold 45,786 HYPE for $1.8 million in USDC.
- Hyperliquid (HYPE) defied all odds and reclaimed $40, even though market dynamics remain strongly bearish.
