Hyperliquid (HYPE) is currently navigating a period of significant market turbulence, characterized by intense selling pressure and a prevailing bearish sentiment among key market players. Following a broader market pullback, the altcoin has experienced a notable decline, raising concerns about its immediate price trajectory and the resilience of crucial support levels.
Aggressive Whale Exits and Selling Spree
The recent downturn for HYPE has been exacerbated by the aggressive actions of large holders. After HYPE dropped to $40, a single whale initiated a massive sell-off, liquidating 199,999 HYPE tokens for $8.15 million at an average price of $40.77. This swift exit, driven by short-term panic and a desire to lock in gains or avoid further losses, saw the funds moved off-chain to Binance, signaling a complete departure from the market. This individual whale activity mirrors a broader trend, with market data indicating that sellers have dominated the spot market over the past week, resulting in a positive Spot Netflow of $23.69 million — a clear sign of significant selling pressure.
Whales Shorting and Bearish Market Outlook
Beyond spot selling, whales are actively betting against HYPE in the futures market. Reports highlight a whale opening a substantial $13 million short position with 5x leverage, already accruing significant profit despite funding costs. This aggressive shorting strategy is not isolated, as the overall market sentiment points to widespread bearishness. The altcoin's Long Short Ratio has dipped below 1 to 0.95, indicating that most market participants anticipate further price drops in the near term, aligning with the negative outlook of large investors.
Critical Support at Risk
The combined effect of whale selling and aggressive shorting has significantly strengthened the downside momentum for HYPE. Momentum indicators, such as the Momentum Index (MOM) and the Stochastic Momentum Index (SMI), have both plunged into negative territory, signaling a weakening market strength and confirming that bears are firmly in control of short-term price action. The $40 support level is now under severe threat. Should sellers continue to exert pressure at this price point, a break below $40 could see HYPE fall to $38. However, if the $40 level manages to hold, there remains a possibility for the altcoin to rebound towards $43.
