Hyperliquid: Is HYPE headed to $44? THESE opposing signals offer clues

Hyperliquid [HYPE] has been consolidating between the $55 and $76 zone since late May. However, most of the movement has been to the downside since hitting a peak value above $76.

The decline began after Arthur Hayes started offloading his holdings despite having a $100 target. Consequently, whales and institutions have taken similar actions, but the price remains confined within this range.

Could this selling pressure drag HYPE toward $44?

Are large holders selling HYPE?

A Hyperliquid whale sold 91,100 HYPE worth over $5.81 million after weeks of inactivity. Before the sale, the whale had accumulated 861,100 HYPE worth $55.30 million since April.

The whale subsequently withdrew the USDC proceeds from Hyperliquid, according to Onchain Lens. The withdrawal suggested an exit from the position.

Additionally, a wallet linked to a16z continued transferring HYPE through OKX, Bybit, and Gate. The wallet sold 421,796 HYPE worth more than $25.30 million over 24 hours.

Together, the two wallets generated over $31 million in Spot selling pressure within one day.

On top of that, Open Interest declined alongside HYPE’s price. Long liquidations reached $1.95 million, compared with $396,000 in shorts. The imbalance indicated long-position deleveraging rather than confirmed shorting.

Could HYPE fall toward $44?

The charts were a reflection of the selling activity as HYPE fell from $76 to around $59. This represented a 24% drawdown from its all-time high (ATH).

HYPE also fell below the 20-day and 50-day Exponential Moving Averages [EMAs], signalling weaker short-term momentum. The decline may partly reflect profit-taking. Meanwhile, the Money Flow Index [MFI] fell sharply to 35 at press time.

However, the 100 and 200 EMAs were yet to be breached. If the two EMAs break, increasing sell pressure from whales and institutions may push the price to the demand area in the $38-$44 zone.

What to note—Hyperliquid tops total net flows!

Even so, HYPE’s bearish structure remained unconfirmed.

Hyperliquid led tracked chains with $145 million in daily Net Inflows. Arbitrum [ARB], Ethereum [ETH], and Polygon [POL] recorded Net Outflows.

On a bigger scale, Hyperliquid has a monthly net flow of $1.80 billion with 13 days left. Hyperliquid’s total perp volume continues to grow with HIP-3 share at 45%, hinting at adoption and growth.

As such, the massive capital inflow into the Hyperliquid ecosystem may help the HYPE token survive this decline to below $50.

Final Summary

• Whales and institutions are selling, thus inducing pressure on HYPE, which has lost 24% of its cap from its ATH. 
• HYPE has broken below short-term demand levels but trades above 100 and 200 EMAs, suggesting the drop to $44 is not yet confirmed.