Hyperliquid (HYPE) has been consolidating between the $55 and $76 area since late May. However, most of the movement has been to the downside since it reached a high above $76.
The decline began after Arthur Hayes began dumping his holdings despite a target of $100. As a result, whales and institutions have taken similar actions, but the price remains confined within this range.
Could this selling pressure drive HYPE towards $44?
Are large holders selling HYPE?
A hyperliquid whale sold 91,100 HYPE worth over $5.81 million after weeks of inactivity. Prior to the sale, the whale had accumulated 861,100 HYPE worth $55.30 million since April.
The whale then removed USDC products from Hyperliquid, according to Onchain Lens. The withdrawal suggested an exit from the position.
Additionally, a wallet linked to a16z continued to transfer HYPE via OKX, Bybit and Gate. The wallet sold 421,796 HYPE worth over $25.30 million in 24 hours.
Together, the two portfolios generated more than $31 million in spot selling pressure in one day.
On top of that, Open Interest has decreased alongside the price of HYPE. Long liquidations reached $1.95 million, compared to $396,000 for short sales. The imbalance indicated a deleveraging of long positions rather than a confirmation of a short sale.
Could HYPE fall towards $44?
The charts reflect selling activity, with HYPE falling from $76 to around $59. This represents a 24% decline from its all-time high (ATH).
HYPE also fell below the 20-day and 50-day exponential moving averages (EMA), signaling slowing short-term momentum. This decline could be partly due to profit taking. Meanwhile, the Money Flow Index (MFI) fell sharply to 35 at press time.
However, the 100 and 200 EMA had not yet been crossed. If both EMAs break, increasing selling pressure from whales and institutions could push the price towards the demand zone located in the $38-$44 area.
What to note: hyperliquid exceeds total net flows!
Despite everything, the bearish structure of HYPE is not confirmed.
Hyperliquid channels lead with $145 million in daily net inflows. Arbitrum (ARB), Ethereum (ETH), and Polygon (POL) saw net outflows.
On a larger scale, Hyperliquide has a monthly net flow of $1.80 billion with 13 days remaining. Hyperliquid’s total perp volume continues to grow with HIP-3 share at 45%, suggesting adoption and growth.
As such, the massive influx of capital into the hyperliquid ecosystem could help the HYPE token survive this dip below $50.
Final summary
- Whales and institutions are selling, thus inducing pressure on HYPE, which has lost 24% of its cap compared to its ATH.
- HYPE has fallen below near-term demand levels but is trading above the 100 and 200 EMA, suggesting the decline to $44 is not yet confirmed.
