Hyperliquid’s $95 high to $76 low: A whale deposit deepens HYPE’s bearish case

Since touching a high of $95 in early October, Hyperliquid [$HYPE] has struggled to maintain an upward trajectory. In fact, the altcoin has traded within a descending channel, falling to a low of $74 before slightly rebounding.

As of this writing, Hyperliquid was trading around $76, down 4% on weekly charts. With the altcoin in a prolonged downtrend, it seems some high-net-worth investors may be choosing to exit.

Hyperliuid whale deposits 494,310 $HYPE into exchanges

According to Lookonchain, three wallets, likely belonging to the same whale, deposited 494,310 $HYPE, worth $37.83 million, into Coinbase.

Depositing tokens into exchanges doesn’t always mean selling. However, in many cases, such massive deposits have preceded selling rather than holding, especially when made by a single whale.

If the whale decides to sell now, the sale could put significant pressure on $HYPE, especially given the altcoin’s current trajectory. The timing also adds weight to these concerns.

Even more concerning, the deposit does not support a short-term trend reversal and is therefore something worth watching.

What does exchange activity suggest?

A look at Exchange Netflow shows that, overall, exchange outflows have continued to exceed inflows.

In fact, Exchange Netflow has remained largely negative even during this extended period of market weakness. The metric has held on for seven consecutive days.

At press time, Netflow was around -$3.4 million, suggesting that more funds have left exchanges. Historically, reduced exchange supply has been associated with stronger $HYPE price action.

What’s next for $HYPE?

Although exchange withdrawals currently outpace inflows, $HYPE’s market structure remains bearish. The momentum indicators also support this bearish outlook.

For starters, the altcoin’s Relative Strength Index (RSI) has declined over the past five days after forming a bearish crossover, falling to a low of 35.

At such low levels, the RSI suggests that bearish momentum is prevailing. The ADX DI further supports this trend.

The (-DI) rose to 26, while the (+DI) fell to 11. Meanwhile, the ADX rose to 28. This setup indicates that the downward trend is strong and could continue.

Currently, Hyperliquid is testing the $75 support level. If the bearish momentum persists, the altcoin will breach the price level, drop further, and potentially fall below $70.

To invalidate this bearish setup, Hyperliquid needs a daily close above $80, the level where the price broke down four days ago.

Final Summary

• Three wallets, likely belonging to the same whale, deposited 494,310 $HYPE, worth $37.83 million, into Coinbase.
• Hyperliquid’s price remains stuck in a bearish structure, with bears eyeing a further drop below $70.