Hyperliquid (HYPE) has been consolidating between $55 and $76 since late May. However, most of the movement has been to the downside since it reached a peak above $76.
The decline began when Arthur Hayes started selling off assets despite having a target of $100. As a result, whales and institutions took similar actions, but the price remained limited in this range.
Could this selling pressure drag HYPE towards $44?
Are major shareholders selling HYPE?
Hyperliquid whale 91,100 units sold EXCITE After weeks of inactivity, it is worth over $5.81 million. Before the sale, the whale had accumulated 861,100 HYPEs worth $55.30 million since April.
Whale later withdrew USDC proceeds from Hyperliquid. According to Onchain Lens. Withdrawal meant exit from the position.
Additionally, a wallet connected to a16z continued to transfer HYPE via OKX, Bybit, and Gate. The wallet sold 421,796 HYPEs worth more than $25.30 million in 24 hours.
Together, the two wallets generated over $31 million in Spot selling pressure in one day.
Moreover, the Open Position decreased with the price of HYPE. Long liquidations reached $1.95 million, while short positions amounted to $396,000. The imbalance indicated long deleveraging rather than confirmed short selling.
Could HYPE drop to $44?
The charts were a reflection of selling activity, with HYPE falling from $76 to $59. This represented a 24% decline from the all-time high (ATH).
HYPE also fell below the 20-day and 50-day Exponential Moving Averages (EMA), signaling that short-term momentum is weakening. The decline may partly reflect profit-taking. Meanwhile, the Money Flow Index (MFI) has fallen sharply to 35 at the time of writing.
However, the 100 and 200 EMAs have not been breached yet. If the two EMAs break, increased selling pressure from whales and institutions could push the price into the demand area in the $38-$44 region.
Things to consider — Hyperliquid tops total net flow!
However, HYPE’s downtrend structure has not been confirmed.
Hyperliquid led the crawler chains with daily Net Inflows of $145 million. Arbitrage (ARB), Ethereum (ETH), And Polygon (POL) Net Outflows recorded.
On a larger scale, Hyperliquid has monthly net flow of $1.80 billion with 13 days remaining. Hyperliquid’s total sales volume continues to grow with HIP-3 accounting for 45%, indicating adoption and growth.
Therefore, massive capital inflow into the Hyperliquid ecosystem could help the HYPE token break below $50 in this decline.
Final Summary
- Whales and institutions are selling, which puts pressure on HYPE, which has lost 24% of its ATH cap.
- HYPE has fallen below short-term demand levels but is trading above the 100 and 200 EMAs, indicating that a decline to $44 has not yet been confirmed.
