"Selling pressure is mounting, but the drop to $44 is far from certain," noted a market participant observing recent moves in Hyperliquid's HYPE token. Since late May, HYPE has been trading between $55 and $76, primarily trending downward after peaking above $76. This downturn began as Arthur Hayes started liquidating his stake, despite setting a $100 price target, and was quickly followed by whales and institutional investors mimicking his strategy.
Significant sales include a whale offloading 91,100 HYPE tokens valued at over $5.8 million after weeks of inactivity. This same whale had previously accumulated 861,100 HYPE tokens worth $55.3 million since April but subsequently withdrew the USDC proceeds, signaling a potential exit. Also noteworthy is a wallet linked to venture firm a16z, which sold 421,796 HYPE exceeding $25 million within 24 hours, moving funds through exchanges like OKX, Bybit, and Gate. Together, these two wallets added spot selling pressure of more than $31 million in a single day.
The token’s price decline has coincided with a drop in Open Interest and heavy long liquidations nearly $1.95 million versus $396,000 in shorts indicating long-position unwinding rather than aggressive shorting. This has caused HYPE to fall about 24% from its all-time high, dipping below the 20-day and 50-day Exponential Moving Averages (EMAs), typically a signal of weakening short-term momentum. The Money Flow Index is currently low at 35, reflecting diminished buying activity.
Despite this, the 100-day and 200-day EMAs remain intact, acting as potential support levels. Breaching them could invite further selling pressure that might push HYPE toward the $38-$44 demand zone. Yet, Hyperliquid leads other tracked chains with $145 million in daily net inflows, outpacing competitors like Arbitrum, Ethereum, and Polygon, which have recorded net outflows. Monthly net flows exceed $1.8 billion with nearly half the month remaining, and perpetual contract volume continues to grow. This substantial capital inflow may help stabilize HYPE amid near-term volatility.
This material is for informational purposes only and does not constitute financial advice.
