Hyperliquid Holds Key Support After Whale Exits Position

Hyperliquid’s native token HYPE is stabilizing after defending a major high-timeframe support zone. On-chain data shows a long-term whale has fully exited a multimillion-dollar position. The move comes as traders monitor signs of a potential trend reversal following an extended period of consolidation.

On-chain data shared today by Lookonchain shows the whale accumulated 295,917 HYPE over the past 14 months at an average cost of about $8.74. The wallet was later fully unstaked and sold the position for approximately $7.51 million USDC, realizing a $4.92 million profit. The exit marks the closure of one of HYPE’s largest known wallets.

Whale Exits Smoothly

A review of the trading history reveals that the whale was employing multiple swap tactics (versus one single exchange) to transfer the assets.

Additionally, rather than selling at a time when they had an asset value of approximately $15.5 million, the whale sold HYPE to maximize profit. This differs from selling out of fear of a decrease in price.

The whale has completely exited their position, which will lower the likelihood of exposure to “residual” liquidation risk. Therefore, analysts are viewing this as a reduction in overhead selling pressure (not a bearish indicator).

Also Read | Hyperliquid Becomes Top Venue for Crypto Price Discovery 

Technical Indicators Suggest Continued Bullish Trend

The high-timeframe zone for the Hyperliquid token has a very visible demand area. This is also the primary support level that most traders are using.

Additionally, a 3-day reversal candle has been confirmed by the analysts at CryptoBull 360 on the HTFs. This further supports the idea that the recent bounce is structural in nature as opposed to a short-term reaction.

Price has bounced off the $22-$24 demand area on the 4-hour chart and regained the $27.40-$27.50 area with increasing volume. The momentum indicators are showing a favorable picture for the move.

The RSI is in the top third of its range, and the MACD is now turning bullish with an increasing number of positive histogram bars. The momentum indicators show that the uptrend is building strength after a long period of sideways trading.

Source: TradingView

Derivatives Trading Volumes Continue To Rise

As an addition to the price action, the derivative trading volume within the Hyperliquid Ecosystem has been increasing. An X post stated that the open interest on Hip-3 (the builder deployed Perpetuals) had increased to a new all-time high of $793 million. This is because commodity-based trading has expanded.

Hip-3 allows developers to deploy permissionless perpetual futures using their HYPE tokens. Thus, making the derivative growth to be correlated with the token’s utility.

The fact that the derivative trading volume continues to grow shows that traders are still actively participating in the ecosystem.  This has persisted even though one large holder has removed himself.

Also Read | Hyperliquid Sees HIP-3 Open Interest Triple to Record $790 Million