Hyperliquid (HYPE) has been consolidating between the $55 and $76 zone since late May. However, most of the trend has been down since it hit a price higher than $76.
The decline started when Arthur Hayes began to lower his stock despite having a target of $100. Therefore, whales and institutions have done the same, but the price remains within the range.
Will this selling pressure drag the HYPE to $44?
Are the main owners selling HYPE?
Hyperliquid Whale sold 91,100 HYPE totaling $5.81 million after weeks of doing nothing. Before the sale, the whale received 861,100 HYPE worth $55.30 million since April.
The whale withdrew USDC coins from Hyperliquid, according to Onchain Lens. The dismissal resulted in his exit from the venue.
Additionally, the a16z-linked wallet continued to transfer HYPE via OKX, Bybit, and Gate. The wallet sold 421,796 HYPE worth more than $25.30 million in 24 hours.
Together, the two wallets generated more than $31 million in Spot trading leverage within a single day.
On top of this, Open Interest fell along with the price of HYPE. The long closing reached $1.95 million, compared to $396,000 in the shorts. This disparity indicates that there is a wide gap rather than a narrow one.
Can HYPE fall to $44?
The charts were a reflection of the selling activity as HYPE dropped from $76 to around $59. This represents a 24% drop from the all-time high (ATH).
HYPE also fell below the 20-day and 50-day Exponential Moving Averages (EMAs), indicating short-term weakness. The decline may indicate profit-taking. Meanwhile, the Money Flow Index (MFI) fell sharply to 35 at press time.
However, the 100 and 200 EMAs were about to be broken. If these two EMAs break, increased selling by whales and institutions could push the price to a key position in the $38-$44 zone.
What you need to know – Hyperliquid above the entire net flows!
Even so, the nature of HYPE remained uncertain.
Hyperliquid led the chain with $145 million in daily Net Inflows. Arbitrage (ARB), Ethereum (ETH), and Polygon (POL) wrote Net Outflows.
On a larger scale, Hyperliquid has $1.80 billion in cash for the month with 13 days remaining. Hyperliquid’s total volume continues to grow with HIP-3’s share at 45%, based on launch and growth.
Likewise, large investments into the Hyperliquid ecosystem could help the HYPE token survive this drop to below $50.
Brief Summary
- Whales and agencies are selling, thus forcing HYPE, which has lost 24% of its cap from ATH.
- HYPE has broken below the short-term key but is trading above the 100 and 200 EMA, indicating a low of $44 is not yet confirmed.
