Hyperliquid has struggled significantly to maintain an upward momentum. In fact, the recent attempt collapsed as the altcoin faced rejection at $57, resulting in another pullback.
As of this writing, Hyperliquid was trading at $54, down 3.3% on the daily charts. Before this slip, the altcoin had been on an upward trajectory, hiking by 4.9% on weekly charts.
HyperLabs unlocks $23 million worth of HYPE
Even though Hyperliquid [HYPE] is experiencing strong downside pressure, Hyperlabs made a move that is likely to exacerbate it.
According to Lookonchain, HyperLabs unlocked another 433,025 HYPE worth $23.46 million. After the unlock, they have been gradually depositing these tokens into exchanges, including Flowdesk and OKX.
The exchange deposit points towards preparation to sell. In the past, their deposits into exchanges have preceded selling.
Therefore, the recent move is likely to cause more pressure on HYPE, as the altcoin has recently exhibited some weakness.
Sellers hold firms as whales attempt to absorb pressure
Hyperliquid whales have constantly come to rescue and have attempted to slow down the downside momentum. According to Onchain lens, a newly created wallet withdrew 197.36k HYPE worth $10.69 million from Coinbase.
This whale buying is a highly needed boost, especially as sellers have remained dominant in the market.
Looking at Hyperliquid Spot Buy Sell Volume, the market delta has remained negative for three consecutive days. Over the past day, for example, the altcoin’s sell volume rose to 297k compared to 229k in buy volume.
As a result, the market delta dropped to -68k. A negative delta is a clear sign of strong selling pressure.
Therefore, if whales can maintain the accumulation, they could help in absorbing the pressure. In doing so, Hyperliquid will have a clear path for a potential rebound.
What momentum indicators suggest
Hyperliquid sat under strong downward pressure, with sellers dominating the market. With HyperLabs also joining the sell side, the altcoin is under more pressure.
In fact, the altcoin’s Relative Strength Index (RSI) has remained within the bearish zone for three weeks. At 42, the RSI indicates that sellers are enjoying significant control of the market.
Even more so, the altcoin sits below the 50- SMA signaling strong short-term downside pressure. Taken together, these indicators reflect bearish pressure and signal the likelihood of extended market weakness.
Therefore, if the selling pressure continues to dominate, Hyperliquid is likely to drop towards $51 despite the recent whale purchases.
Final Summary
- HyperLabs unlocked another 433,025 HYPE worth $23.46 million and started exchange deposits, rising sell off concerns.
- A newly created wallet withdrew 197.36k HYPE worth $10.69 million from Coinbase.
