Since successfully holding $30 support level, Hyperliquid [HYPE] has closed at higher highs, signaling potential recovery.
In fact, at press time, HYPE was trading at $35.47, after dropping slightly by 0.8% on the daily charts. Before the slip, HYPE had been on an upward trajectory, hiking 7.03% on weekly charts.
Amid this attempted market recovery, the Hyperliquid team made a controversial move, transferring 2.6 million tokens.
Hyperliquid moves $90.18M worth of HYPE
According to HypurrScan, the Hyperliquid team moved 2.6 million HYPE, valued at $90.18 million, from Staking to Spot.
When a team moves to Spot, it doesn’t guarantee a sale, but it signals intent or preparation to sell. After this transfer, the Hyperliquid team still holds 240 million staked HYPE worth $8.36 billion.
Thus, such moves cause market concerns about potential selling pressure.
Coupled with that, Hyperliquid Cliff unlocks saw $344 million worth of HYPE, or 2.66% of the total circulating supply released.
Source: Tokenomist
These two flows into the spot market could trigger bearish sentiment, especially among holders. Thus, if sold, they could accelerate the downward pressure, resulting in lower prices.
Demand, especially from whales, remains steady
Notably, after HYPE rebounded from a $29k drop in Big Whale Orders, whales increased their accumulation rate. According to CryptoQuant, Spot Average Order Size data showed large whale orders for seven consecutive days.
Source: CryptoQuant
Whale orders being dominant in the spot market suggests increased whale activity either on the sell or buy side.
In this case, it seems whales have been accumulating over the past three days. Looking at the altcoin’s spot Netflow, this metric has remained negative for three consecutive days.
Source: CoinGlass
At press time, Spot Netflow was at a monthly low of -$7.87 million, indicating increased exchange outflows.
Usually, increased outflows indicate more buyers are active in the market, helping them absorb any rising selling pressure.
Historically, such market conditions have accelerated upward strength, often a prelude to higher prices.
What’s next for HYPE?
According to AMBCrypto, Hyperliquid has remained resilient, pivoted by steady demand from whales. Driven by the demand, altcoin’s Sequential Pattern Strength rose for three consecutive days.
At the time of writing, this metric sat around 13.6, indicating a gradually strengthening upward momentum. At the same time, the altcoin’s MACD flipped its signal line, thus its histogram turned positive.
Source: TradingView
These two movements suggest that buyers are slowly regaining market control, positioning HYPE for gains. Therefore, if demand holds, especially from whales, HYPE will reclaim $40 and target $43 resistance.
However, if the Hyperliquid Cliff unlock and Hyperliquid tokens transfer cause selling pressure, the altcoin could drop to $32.
Final Thoughts
- Hyperliquid moved 2.6 million HUPE Worth $90.18 million from staking to spot.
- Whale demand has remained steady, stabilizing Hype’s price action and positioning it for a potential move to $40.
