Hyperliquid emerged as the most-viewed token in the last 24 hours, followed by Kinetiq [KNTQ], Bitcoin [BTC], and Pudgy Penguins [PENGU], respectively. At press time, the altcoin was trading at $77, with its daily trading volume hitting $442 million. What spurred this interest though?
Well, this spike in searches was fueled by some news from Binance. It announced the resumption of Hyperliquid [HYPE] and Aptos withdrawals following its late-October hack. It took the exchange 10 days to restart withdrawals.
Back when it was announced, the halt in services frustrated users despite Hyperliquid chain not being directly involved. Binance rectified the issue, citing that withdrawals had been paused to prevent assets from getting stuck in processing and/or loss of funds.
With services gradually resuming across the board, Binance has assured users they will continue to restore additional assets and networks in phases.
In fact, a couple of tokens have already been re-enabled, including altcoins and stablecoins on Ethereum [ETH] and Solana [SOL] networks. As far as HYPE is concerned, the timing here is interesting since the altcoin has been bearish since the crypto-exchange was hacked.
Examining HYPE’s bearish derivatives positioning
Institutions have been building their short positions, with that of Abraxas four times bigger than that of Wintermute. In fact, Abraxas’s perp exposure was in excess of $451 million, while Wintermute’s was about $107 million.
HYPE‘s $77.60 million short position was the second-largest for Abraxas, about half of Bitcoin’s at $158 million. The firm’s short positions were at an unrealized profit of more than $30.77 million.
Not only are some institutions selling, but so are smart traders. For instance, a whale sold 433K HYPE with a 10x leverage but seemed to be sitting on lifetime losses of about $20.92 million.
All these factors, together, have been piling on selling pressure on the token. In fact, this week’s candle eclipsed last week’s green candle that rallied from $76 and closed at $88.
At the time of writing, the altcoin was trading at around $75. This is a key support level that has been critical for hype since late August.
What to expect after restored withdrawals on Binance?
HYPE has fallen by over 12% in the last seven days, with the altcoin being among the worst altcoin performers in the market. The resumption of withdrawals on Binance could revive traders’ confidence and change broader crypto sentiment for the better.
However, if bears break below $75, HYPE could fall to $70 or $60, respectively.
Final Summary
- Binance has announced the resumption of HYPE and APT withdrawals.
- Short positions from two institutions and a smart trader are creating selling pressure for HYPE.
