The Hyperliquid (HYPE) token has extended its bearish streak, dropping 2.5% to approximately $38.5 amid continued selling pressure. Despite the downtrend, a prominent whale opened a new $3 million long position, signaling a major bet on a potential reversal. Broader market data, however, shows a majority of futures traders remain bearish, with significant long liquidations occurring over the past day.
The **Hyperliquid** [HYPE] token’s recent uptrend collapsed at a high of $43.7 several days ago. Since that peak, the altcoin has traded within a steep downtrend, closing at lower lows for four consecutive market sessions.
As of this writing, HYPE traded at approximately $38.5, reflecting strengthening downside risk. Amid this increased price volatility, whale speculation has surged extensively across the market.
After the retracement from $43, whale activity in the futures market paused for three straight days. The Futures Average Order Size data from CryptoQuant showed no large orders during this period, indicating reduced speculative activity from major participants.
Onchain Lens then reported a significant whale re-entering the market. According to the on-chain monitor, a whale created a new wallet and opened a HYPE long position with 10x leverage.
This position was for 80,000 HYPE tokens, worth roughly $3 million. Typically, such fresh capital flowing into long positions signals growing bullish sentiment from whales anticipating a trend reversal.
However, the broader futures market sentiment told a different story. Long positions totaling $2.2 million were liquidated in the past 24 hours, compared to only $282,000 in shorts.
Data from CoinGlass showed the aggregated Long/Short Ratio fell to 0.9508, a figure below 1. This suggests most traders across exchanges are taking short positions, anticipating another price drop.
On Binance, traders showed slightly more optimism, with an average Long/Short Ratio of 1.2. This revealed a mismatch between sentiment on Binance and other trading platforms.
Technical indicators also reflected the market’s bearish pressure. HYPE’s Relative Strength Index (RSI) made a bearish crossover, dropping to a reading of 58.
Concurrently, the Aroon Up line fell from 100% to 71%, while the Aroon Down line plunged to 0%. This showed that while the overall structure remained bullish, upward momentum had significantly cooled.
