The uptrend of Hyperliquid’s HYPE token dropped to $43.7 a day ago. Since then, the altcoin has traded in a steep downtrend, closing at the lowest levels for four consecutive days.
As of this writing, Hyperliquid (HYPE) is trading down 2.5% at $38.5 on the daily charts, reflecting strengthened downside risk.
Whale speculation has increased heavily amid increased price volatility; Some expect a recovery, while others expect a new decline.
Hyperliquid whale worth $3 million a long time ago
Futures whales took a break from the market after Hyperliquid pulled back from $43. CryptoQuant’s Futures Average Order Size data showed no whale orders in futures over the past three days.
This showed that speculative activities of major market participants have decreased. Now that HYPE is holding below $40, the whales are back and continue speculating.
Lens On Chain reported such a whale.
According to the on-chain monitor, a whale created a new wallet and opened a HYPE long position with 10x leverage. Whale took a long position of 80,000 HYPE worth $3 million.
Typically, when fresh whale capital flows into long positions, it signals increasing bullishness as whales anticipate a potential trend reversal.
Futures continue their downward trend
Long positions continue to be liquidated as Hyperliquid still struggles to hold above $40. In fact, $2.2 million in long positions and $282 thousand in short positions were liquidated in the last 24 hours.
Therefore, most market participants turned to short positions. According to CoinGlass data, the Long/Short Ratio has fallen relatively below 1, to 0.9508.
However, market participants on Binance showed a higher demand for long positions, with an average ratio of 1.2. This revealed the mismatch between the sentiments of Binance investors and those of investors on other exchanges.
Generally, a ratio below 1 indicates that most investors are taking mostly short positions in anticipation of another decline. However, traders on Binance showed slight optimism in the market.
Is HYPE in a position to fall further?
Hyperliquid saw strong downward pressure as participants turned bearish on the market. The altcoin’s Relative Strength Index (RSI) has fallen to 58, showing a bearish trend.
The RSI still remains in the bullish zone, indicating a fierce struggle between bulls and bears for market control.
At the same time, Aroon’s uptrend dropped from 100% to 71%, while Aroon’s downtrend dropped to 0.0%. This showed that the momentum was cooling and beginning to weaken as the structure continued its upward trend.
Such market conditions reflected a market at a critical point. Therefore, if the downward pressure continues, the RSI and Aroon Up will decline further, sending HYPE to $35 with critical support at 30.
However, if whales’ participation in futures markets attracts new capital inflows, HYPE could reverse and reclaim $42.
Final Summary
- The hyperliquid whale opened a HYPE long position with 10x leverage on 80,000 HYPE worth $3 million.
- HYPE continued its downward trend, falling 2.5% to $37.
