After a period of intense selling pressure shaking the broader altcoin sector, Hyperliquid (HYPE) is back in the spotlight as its futures indicator reveals whales are positioning long, defying prevailing market caution. This move, underpinned by institutional order flows, signals a calculated confidence in Hyperliquid’s underlying fundamentals even as retail sentiment remains subdued.
Hyperliquid, trading near $35.6 after a daily decline exceeding 6%, is testing critical support levels around its 200-day moving average. Historical patterns show this price area has repeatedly acted as a springboard for renewed bullish momentum, most notably during previous drawdowns in April and July. However, recent attempts to reclaim the 50-day moving average near $42 have faltered, turning that price point into a short-term resistance zone and underscoring the current fragility of market optimism.
Source: @kate_young_ju on X
Data from CryptoQuant shines a light on the motivations of large investors. The average order size in HYPE’s futures market has soared, reflecting the entrance of institutional-scale participants seeking exposure at these levels. Altcoin market observers interpret this as “smart money” preparing for a rebound, in anticipation of improved market conditions or a potential relief rally once the sustained selling tapers off.
Underneath the surface, Hyperliquid’s resilience can be traced to its technical advancements and community engagement. The protocol, built atop a custom high-performance Layer 1, has distinguished itself this year as a go-to decentralized perpetual exchange, drawing traders and liquidity providers with zero gas fees, rapid settlement, and native staking rewards. Its early 2025 rally accelerated network activity, and recent whale accumulation could lay the foundation for the next surge—should macro factors align.
Still, near-term uncertainty persists. If Hyperliquid holds above $35 and retail buy-in returns, analysts envision a move back toward the $40–$42 resistance band. Alternatively, a breakdown below $34 could precipitate a slide toward the next major support at $28. For now, the pivot of the market narrative is clear: whales are betting that Hyperliquid’s volatility is paving the way for its next chapter, not its conclusion.
Disclaimer: This article is provided for informational purposes only and does not constitute financial advice. Investors should always conduct their own thorough research and consult with a qualified financial advisor before making any investment decisions in cryptocurrencies, which are highly volatile and speculative assets.
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