Amid a widespread market slowdown, hyperliquid (HYPE) has faced significant downward pressure, reaching levels last seen in May 2025.
Hyperliquid fell to a low of $20.8 before rebounding slightly. At press time, HYPE was trading at $21.02, down 9.21% on the daily charts, indicating strong bearish pressure.
9 wallets unload $9.8 million from HYPE
While HYPE is falling, the recently distributed tokens added further downward pressure as they ended on the sell side.
Qwantifyio reported that nine team wallets have distributed their HYPE to Flowdesk. These hyperliquid-related wallets sold 450,000 HYPE, valued at $9.8 million.
Source: Qwantifyio on
In fact, of the 1,125,766 HYPE distributed in January, 62.4% were sold via OTC while 33.14% were staked. After these transactions, the spot address only contained 50,000 HYPE worth approximately $1 million.
This suggests that Hyperliquid sold most of the unstaked and unlocked coins. Based on the team’s past behavior, they could probably sell future unlocks.
The team’s approach intensified bearish pressure by increasing circulating supply, especially amid bearish dominance.
Hyperliquid Whales Turn Bearish
Unsurprisingly, with Hyperliquid on a prolonged downtrend, investors, particularly whales, have turned bearish and are now shorting the market..
According to Onchain Lens, a whale placed a short position for 928,898 HYPE worth $19.89 million.
Source: Objectif Onchain
Typically, when whales decide to take short positions, it suggests that they expect the downtrend to continue. However, this bearish trend in futures is not limited to whales; most participants feel the same way.
According to CoinGlass data, Hyperliquid derivatives volume soared 79.8% to $1.46 billion, while open interest increased 1.17% to $1.2 billion.
Source: CoinGlass
When OI and volume increase in tandem, it signals increased participation, with traders taking short or long positions.
In this case, these traders took short positions since the altcoin’s Long Short ratio remained below 1. With this metric at 0.89, this suggests that most participants were bearish and expected prices to fall further.
Is $20 Support in Danger for HYPE?
Hyperliquid fell to an 8-month low amid increasing selling pressure, accelerating the downward momentum.
As a result, the altcoin’s MACD moved below its signal line, falling to a low of -1.1. A bearish move here suggested that sellers were overwhelmingly in control of the market.
Source: TradingView
At the same time, its Directional Movement Index (DMI) fell to 13, further into the bearish zone, reflecting a weaker structure.
These two bearish movements, combined, signal a potential continuation of the trend. So, if selling pressure continues to dominate, HYPE is likely to break above the $20 support and fall to $18.7.
Final Thoughts
- A wallet linked to a Hyperliquid team generated 450,000 HYPE, valued at $9.8 million.
- Whales are shorting the market as HYPE tests a key support level around $20.
