Hyperliquid (HYPE) has recently seen significant whale purchases, with the two main wallets investing a total of over $4.2 million, breaking the current bearish sentiment with strong capital inflows. These large holders are not only actively increasing their positions at the current price but are also holding significant reserves in USDC, hinting at the possibility of continuing to buy in the future. However, retail investors remain cautious, leaving the market divided between confidence and hesitation.
Despite strong inflows, the technical structure of HYPE remains weak. The price continues to move along a narrow descending channel, forming lower highs and lower lows. $35.48 has emerged as a key resistance level that has failed to break through multiple attempts. The MACD maintains a bearish posture with the line below the signal line, and the momentum bar remains weak. The RSI is close to 34, which also indicates that sellers are dominant. However, the price is approaching a psychological support zone that has seen multiple rallies in the past and could be a key aspect to watch for short-term bulls.
Looking at the derivatives market, open interest (OI) fell by 4.44% to $1.47 billion, indicating that traders are reducing their leveraged exposure during the recent decline. Low OI generally indicates a cautious market and also signals potential increased volatility in the future. Once liquidity is gathered, any trending action can amplify price fluctuations. The long-short ratio is slightly bearish, with 52.24% of short positions and 47.76% of long positions. Although bears have the advantage, the gap is not significant, meaning that the market has not yet formed a strong and overwhelming consensus, and small changes in sentiment can trigger structural changes.
Liquidation data shows that bulls have faced significant liquidations during the decline, losing up to $4.49 million, while bears have only lost about $16,300, further highlighting the increased power of sellers. The peak of long liquidation reached the same level as OI, indicating that the market is actively reducing risk exposure under downward pressure. It is worth noting that large-scale liquidations tend to occur near the exhaustion point, and a short-term rebound is not impossible once the forced selling is digested.
Overall, despite the long-term confidence of whales, the technical structure of HYPE remains weak, and trend reversals require more confirmation of buying. A breakout above the resistance at $35.48 remains essential in the short-term direction, while the performance of the support zone will determine whether the market has a new window for a rally.
