Telegram’s Lighter integration has brought attention to Hyperliquid. However, a large whale immediately moved in the opposite direction.
The whale dropped 12.2K HYPE worth $449.1K and placed another $10.4K HYPE sell order worth $386K. It also withdrew $1.26 million in USDC, reducing exposure.
The move follows his exit from multi-million dollar HYPE positions after April 3. His lifetime PnL of over $1.72 million suggested calculated positioning.
However, this has created a divergence between the bullish narrative and capital flows. This change has raised concerns about force distribution.
Bull Flag Holds as HYPE Compresses
HYPE maintained a bull flag after rebounding towards $42.10. Price moved back into a descending channel, forming the structure.
The asset is trading between support at $35.37 and resistance at $38, showing a controlled consolidation. Each retest of the lower boundary attracted buyers, thereby preserving the structure.
However, Hyperliquid (HYPE) failed to decisively reclaim $38, signaling hesitation near resistance. This left the market waiting for a breakout.
A move towards $42.10 remained likely if resistance was broken.
The RSI has stabilized near 49.18, with its moving average near 51.50. The indicator cooled after approaching overbought levels around 70.
Lower highs on the RSI suggest weakening buying pressure.
HYPE Short Liquidations Dominate Recent Activity
The liquidation table showed that short liquidations outnumbered long liquidations, thereby adding to the upward pressure on the market.
Recent figures had recorded $26,58,000 in short liquidations compared to $4,14,000 in long liquidations.
This imbalance had indicated that bearish positions had been driven out as the price held above key levels.
As a result, the market experienced localized compressions, which supported price stability within the pavilion.
However, the absence of significant liquidation spikes suggests controlled volatility rather than aggressive expansion.
Liquidity continued to build around the $35.37 support and $38 resistance areas, leaving the market positioned for a decisive move.
Financing remains positive but weakening
The IO-weighted funding rate remained positive at 0.0008% on April 7, confirming long dominance.
However, funding rates have been trending downward, signaling weakening conviction among long positions.
Traders were less willing to pay premiums, reflecting caution as resistance approached.
This decline contrasted with a bullish price structure and short liquidations. This also corresponds to the activity of selling whales.
This suggests that sentiment has not fully supported the rise.
Can HYPE withstand a breakout?
HYPE had maintained a bullish structure, supported by short liquidations and stable price action. However, falling funding rates and the distribution of whales have introduced a clear hesitation.
The pattern remained constructive, but conviction weakened near resistance.
A breakout remained possible, although underlying signals suggested the bullish force could face immediate pressure.
Final summary
- HYPE held a bull flag between support at $35.37 and resistance at $38, showing controlled consolidation rather than a breakout.
- Repeated rejections near $38 indicate hesitation, with buyers not yet able to confirm a breakout.
