Headline: Whale Buys and Shrinking Exchange Supply Paint a Less Bearish Picture for HYPE Quick take Large Hyperliquid holders and falling exchange inventories are quietly changing HYPE’s risk profile. Whales have been accumulating heavily during the recent pullback into the $22–$24 area, spot net outflows remain negative, top traders retain a long tilt, and derivative funding has calmed — all factors that reduce downside momentum and make an asymmetric upside reacceleration more likely if structure breaks. What the whales are doing - Two concentrated accumulation events add up to more than $21.5M near current prices: - 427,441 HYPE (~$11.58M) bought over two months at an average of $27.09. - 398,830 HYPE (~$10M) bought in about five days at ~ $25.22. - Crucially, much of this buying happened as prices slid toward the $22–$24 zone — behavior more consistent with conviction buying than momentum chasing — and these positions remain held rather than flipped. Technical context - Price is compressing inside a clear descending wedge, trading just above the lower boundary near $22.26 — a formation that typically signals fading bearish momentum. - RSI sits at 35.26 (MA ~34.12), showing oversold territory but no fresh downside expansion. - Recent candles show shallower lows compared with earlier drops from $48 and $35.92, suggesting sellers are losing control incrementally. - Key resistance levels: initial reaction near $29.94; broader breakout resistance around $35.92. - Bottom line: exhaustion is building, but a confirmed reversal will require a break of the wedge structure. Exchange flows: liquidity is thinning - Spot exchange netflows remain negative, reinforcing the accumulation story beyond price action alone. - On Dec. 23, HYPE recorded a net outflow of roughly -$971K, continuing a trend of withdrawals. Earlier windows saw much larger outflows in the -$30M to -$50M range, indicating significant distribution has already occurred. - Persistent outflows during weakness imply lower immediate selling intent and a shrinking available liquid supply — a setup that increases price sensitivity to any buying demand. Derivatives and trader positioning - Binance top traders (Dec. 23): 61.65% long vs. 38.35% short — a long/short ratio near 1.61. This shows a pro-reaction bias without the extremes of crowded optimism; pros appear cautiously bullish rather than reckless. - Hyperliquid OI-weighted funding rate: ~0.0047% (slightly positive). Previously funding dipped below -0.02%, which signaled forced deleveraging; that phase looks complete. - Stabilized, near-neutral funding reduces the risk of liquidation-driven volatility and lets spot flows have greater influence on price. Historically, such funding resets often precede structural reversals. What this means Taken together — concentrated whale accumulation, falling exchange supply, long-leaning professional positioning, and a cooled funding environment — HYPE’s downside momentum appears to be fading and volatility may be skewing toward the upside. That said, these signals do not guarantee an immediate reversal; traders should wait for confirmation via wedge resolution and higher-timeframe structure. Sources: TradingView, CoinGlass Disclaimer: This content is informational only and not investment advice. Cryptocurrency trading carries high risk; do your own research before making any trades. © 2025 AMBCrypto Read more AI-generated news on: undefined/news