After being rejected at $50 a month ago, Hyperliquid (HYPE) continued to trade in a descending channel, reaching a low of $22. At press time, HYPE was priced at $23.2, up 1.24% on the daily chart but down 17.7% for the week.
This sustained downtrend has led to significant losses for HYPE traders, especially in the futures market.
The hyperliquid whale suffers a loss of 22.5 million dollars!
While HYPE has struggled on its price charts, investors, particularly whales, have dominated the futures market. Average futures order size data from CryptoQuant showed Big Whale orders for two consecutive months.
A prolonged period of these orders indicated increased participation, either by going short or going long.
Source: CryptoQuant
According to Lookonchain, a whale opened a 10x long position on 207,497 HYPE, valued at $4.72 million, with a liquidation price set at $13.68.
Meanwhile, Onchain Lens reported another whale whose 5x long position turned into losses, with a floating deficit of over $22.5 million. Despite the mounting pressure, this whale continues to hold strong, with a liquidation looming at $20.66.
Such behavior often reflects strong conviction and confidence in a potential market reversal, as whales endure short-term pain in hopes of achieving significant future gains.
Clearance Rate Peaks
As observed above, whales have been betting aggressively on a price rebound. However, this is not an isolated case since most participants took long positions.
According to CoinGlass data, Hyperliquid’s Long Short ratio jumped to 1.03, at press time, where 50.81% represented long positions while 49% represented short positions.
Source: CoinGlass
Therefore, most market participants are optimistic and expect prices to rise further. Unfortunately, these sentiments continued to lead to more liquidations of long positions.
Indeed, between December 18 and 19, more than $70 million in long positions were liquidated. During the same period, only $0.54 million of short positions were liquidated.
Source: CoinGlass
Such market conditions indicate that bullish leverage is wiped out as the market fluctuates lower.
HYPE bears dominate the market
Despite whale demand for long positions, bearish pressure overwhelmed the market, leading to the liquidation of most of these long positions. As such, bullish leverage failed to boost the market, leaving it on the verge of further losses.
At the time of writing, Hyperliquid’s Relative Strength Index (RSI) sat in oversold territory at 29, indicating seller dominance.
Likewise, the altcoin is below the short-term moving averages (MAs), MA9 and MA21, reflecting intense short-term bearish pressure.
Source: TradingView
Current market conditions suggest strong bearish momentum and a high likelihood of continued weakness.
If this trend persists, HYPE could break below the $22 support and fall to $20, potentially triggering a whale sell-off.
On the other hand, a bullish reversal requires a decisive close above MA9 at $26 and MA21 at $29. Only then could the market outlook shift in favor of buyers.
Final Thoughts
- The hyperliquid whale is sitting on a floating loss of $22 million, as liquidation hits $70 million.
- HYPE is under intense bearish pressure and could fall to $20 if bulls fail to reverse MA9 and MA21.
