The aggressive hyperliquidity (HYPE) correction resumed after a pause on July 6. The decline brought HYPE back into one of its most closely watched support zones.
However, on-chain activity showed long-term holders increasing their exposure rather than exiting.
Recently, a single entity staked 1.49 million HYPE, worth approximately $88.2 million.
The entity spread the stake across eight portfolios, reducing its concentration within a single address.
Reports indicate that wallets held their tokens for approximately nine months before staking them. This holding period suggested long-term positioning rather than short-term trading activity.
Why are holders betting more on HYPE?
The large deposit was part of a broader increase in Hyperliquide’s staking activity.
According to recent analysis from AMBCrypto, Hyperliquid network data recorded a 40% increase in net staking flows. This brought the total amount of HYPE staked to approximately 436 million tokens.
The increase could influence the price of HYPE, as staking reduces the supply immediately available for trading.
However, staking alone cannot guarantee price appreciation.
Sustained inflows may still indicate that holders prefer to earn staking rewards rather than sell during market weakness. In the case of HYPE, the timing corresponded to the token returning to a demand zone that previously attracted buyers.
This has led traders to wonder if a reduced liquid supply could help stabilize the HYPE correction.
Can HYPE defend the $52 zone?
On the daily chart, the broader market structure of HYPE remained bullish despite its recent pullback. The decline brought HYPE back to the $52-$58 demand zone.
This area has already produced several rebounds, making it an important level for buyers.
The area also straddled the 200-day exponential moving average (EMA) at $57.09.
Although HYPE traded below its 20-day and 50-day EMAs, the 200-day EMA remained a longer-term support benchmark.
If support holds alongside a high stake, long-term holders could absorb available supply during the correction. On the other hand, a decisive break below $52 could weaken the broader bullish structure and prompt further selling.
The $64 resistance level remains the next major target if buyers regain control.
Therefore, HYPE’s next move could depend on whether the betting conviction translates into demand around $52-$58.
Final summary
- HYPE returned to major support while net staking flows increased by 40%.
- Holding $52 could support the recovery, while a breakout could worsen the correction.
