Hyperliquid has traded within an uptrend, closing at higher lows since rebounding from a $34 slip days ago. The altcoin touched a local high of $37.3, and flipped its 9-day moving average, signaling strengthening momentum.
As of this writing, Hyperliqud [HYPE] traded at $37, up 3.5% on the daily charts. Despite showing upside strength, some investors, especially whales, have continued to sell.
Hyperliquid whale dumps 450,000 HYPE
Hyperliquid whales have remained relatively active despite the continued market weakness and volatility. However, with HYPE trading significantly below its peaks, most of these large entities have turned bearish.
In fact, the Cohort Bais metric showed that whales have been either slightly bullish or slightly bearish since March. So far in April, whales have been strongly bearish, largely driven by the group’s rising losses.
In fact, over 48% of the whale wallets are currently holding at a loss, while only 51% of whales are in profit. As a result, some have either decided to lock in gains, while others capitulated and exited to avoid further losses.
Onchain Lens reported one such whale. According to the on-chain monitor, Loracle.hl continued selling his HYPE stack. The whale has now sold all 450,000 HYPE for $15.012 million.
The whale has been aggressively dumping HYPE the past four days. Out of $15.012 worth of HYPE, $12.725 million has already been deposited into Binance.
The whale’s decision to dump all of his HYPE holdings showed strong bearishness and reduced confidence in the asset.
Furthermore, exchange activity has echoed this selling activity. Coinglass data showed that Hyperliquid Spot Netflow has remained positive for two consecutive days.
At press time, Netflow was $1.36 million, a jump from $1.1 million the previous day. A positive netflow suggested higher deposits and reduced outflows, a clear sign of aggressive selling.
Can whale selling derail HYPE gains?
Historically, increased selling, especially from whales, has preceded weakened market structure, further stretching downside risk.
Although whales have shown greater bearishness, the HYPE market has defied all odds and shown strengthening upside. This showed reduced impact on the market from whales, with demand from other participants effectively absorbing whale pressure.
While Loracle.hl sold the past four days, HYPE has recorded a strengthening momentum. In fact, the altcoin’s Stochastic RSI formed a bearish crossover and climbed from 3 to 33, indicating a rising presence of buyers, with momentum lifting off oversold levels.
The MA Cross also validated this strength with the altcoin flipping the 9-DMA. These conditions showed the likelihood of the trend’s continuation regardless of whale activity.
If the upside momentum holds, HYPE could flip 21-DMA at $38 and target its immediate resistance at $40. However, if whales pressure the market and cause a shift in sentiment across the board, HYPE will breach the $36 support and fall to $34.
Final Summary
- HYPE is trending upward, making higher lows after bouncing from $34.
- Whales are turning bearish, with many in losses and one dumping 450,000 HYPE (~$15M) to Binance.
Gladys Makena
JournalistGladys Makena is a Cryptocurrency and Financial Analyst at AMBCrypto with four years of market analysis experience. Her quantitative expertise is supported by a strong background in Finance, providing a solid foundation for a data-driven approach. At AMBCrypto, Gladys is committed to providing the community with timely and insightful news, reports and technical analysis.
