HYPE: Whale Accumulates $3.94M as Futures Cool Off

Key Takeaways

• A Hyperliquid whale re-emerged after five months, purchasing $3.94 million worth of HYPE as prices retraced from all-time highs.
• Hype Futures participation has decreased, with perpetuals volume down by $8 billion.

Hyperliquid [HYPE] experienced a retracement to a low of $46 after hitting a new ATH of $52.12. At press time, HYPE traded at $47.7, down 4.7% in the last 24 hours. Despite this dip, the altcoin is still up 13% on the weekly charts.

Hyperliquid Whale Activity

According to Onchain Lens, a whale deposited $5.72 million into Hyperliquid after a five-month hiatus, using $3.94 million to buy 81,572.11 HYPE tokens. The whale still holds $1.78 million in reserve with a buy order at $48, indicating continued accumulation interest.

Whale re-emergence and accumulation often signal strong market conviction, typically considered a bullish sign.

Exchange activity supports this, with HYPE recording negative Spot Netflow for two days, reaching a low of -$13.9 million on August 27th. At press time, Netflow was -$4.04 million, reflecting continued exchange outflows.

Historically, increased exchange withdrawals, especially by whales, have put upward pressure on asset prices.

Futures Market Slowdown

Despite HYPE's rally to an ATH, the Futures market momentum has slowed. Hyperliquid’s Perpetuals Volume has declined for four consecutive days, from $21 billion to $13 billion, according to Defillama data.

This suggests decreased participation and reduced market leverage. However, sentiment remains bullish, with longs staying dormant.

HYPE’s Funding Rate was 0.02, remaining positive for two weeks, indicating that longs are paying shorts, but new traders are avoiding the market. This bullish bias, without strong participation, warns of a possible correction.

HYPE's Momentum: Can It Last?

AMBCrypto’s analysis indicates ongoing upward momentum despite reduced futures participation, as whale demand provides support. TradingView data shows the Relative Strength Index (RSI) at 56, entering bullish territory.

The Stochastic RSI surged to 72, further confirming the uptrend's strength. Such momentum indicators suggest buyer dominance and trend continuation.

If current conditions hold, Hyperliquid will retest $52 resistance; a breakthrough could lead to a new ATH. Conversely, if futures participation continues to decline, investors may withdraw capital, causing a reversion to $45.6.