Why Dragonfly Capital's $648K Move Didn't Boost HYPE Prices
Whale Withdrawal Fails to Boost HYPE
Dragonfly Capital recently withdrew 25,989.71 Hyperliquid (HYPE), valued at approximately $648.6K, from Bybit. This move indicates a preference for self-custody rather than immediate market activity. However, the lack of supporting market metrics means the transfer hasn't translated into a price increase.
Spot Market Dynamics
Spot market flows have experienced a shift, with a previous $1.62M net outflow reversing into a +$538.75K net inflow. This suggests a return of tokens to exchanges, likely preparing for sales rather than holding, thereby increasing selling pressure.
Resistance at $28
HYPE's price faced rejection at the $28 resistance level, indicating strong seller control. The price has since drifted towards the $25 support, with potential further declines to $22 or even $15 if sellers maintain pressure.
Open Interest and Liquidations
Open Interest (OI) has dropped by 7.91% to $1.31 billion, reflecting a risk-off sentiment among traders. The lack of significant short liquidations suggests ongoing downside pressure rather than an imminent rebound.
Final Analysis
- Sellers Maintain Control: Current market conditions, including increased exchange inflows and a weak price structure, suggest that sellers are dominating the short-term outlook for HYPE.
- Downside Risks Persist: Without renewed demand, further declines are possible before any substantial recovery can occur.