Hyperliquid faces $35M whale activity – Can bulls absorb HYPE supply?

Hyperliquid [HYPE] has entered a more volatile phase following a surge of large transactions by major holders. Over the past two days, HyperLabs unstaked about 421,879 HYPE (roughly $18.08M), much of which has already moved. Within just eleven hours, around 400,000 HYPE valued at $17.34M was transferred to exchanges such as Bybit and OKX.  That kind of movement rarely goes unnoticed. When tokens shift from staking into exchanges, it typically signals an intention to sell or at least prepare liquidity for trading.  Whale deposits add to near-term supply pressure The situation was further complicated when another large wallet, reportedly linked to Matrixport, deposited over 403,000 HYPE (around $17.4M) into Hyperliquid and began selling shortly afterward. This creates a clear short-term dynamic: supply is increasing quickly while large holders are reducing exposure. In most cases, that combination introduces a bearish pressure, especially if market demand is not strong enough to absorb the inflow. The size of the transactions and the timings matter. Historically, the act of multiple large players moving funds simultaneously often amplifies market impact. Unstaking signals a shift in positioning   The recent unstaking event presents a potential bearish signal. In most cases, when tokens are staked, they are effectively removed from the circulating supply and reflect longer-term holding intent. However, when they are unstaked, that changes. For instance, in HYPE's case, the move suggests that at least some large holders are shifting from a long-term stance to a more active or defensive position. Whether that is profit-taking, risk management, or a broader strategy shift, the effect is the same. More liquid supply could be on the verge of entering the market. At press time, volatility was not apparent. Data from the network’s Volume Bubble Map showed cooling market conditions, even though buyers continued to dominate short‑term sentiment.  Short-term caution for HYPE? In the short term, HYPE is likely to face increased volatility and potential bearish pressure as the market digests these flows. However, this does not automatically invalidate the longer-term outlook. On the daily chart, the structural shift beyond $43.56 on the 6th of May was highly significant. The token could be on a short correction as it absorbs the projected volatility surge before an ultimate rally to test the next resistance price level at $45.76. For now, the key question is whether buyers can keep up with the whales. At the time of writing, the buyers have managed to absorb the liquidity, as no significant explosive price move was visible on the daily chart. In fact, the 90-day Spot Taker Cumulative Volume Delta data indicated a surging buyer's dominance recently. This further affirms the network’s long-term bullish bias is still in the bulls' favor despite the short-term projected correction and volatility surge. Final Summary HYPE is under pressure as large holders unstake and move significant supply to exchanges. Whale selling activity is increasing short-term volatility and could weigh on price if demand weakens.