Hyperliquid (HYPE) has found itself in a challenging position amidst significant sell-offs by team-linked wallets, further intensifying market bearishness. Recent data shows a total of 450,000 HYPE tokens, valued at $9.8 million, offloaded in the market, exacerbating the downward momentum.
Market Struggles and Investor Sentiment
Amid a broader cryptocurrency market downturn, HYPE has experienced its most notable pressure since May 2025, with prices dropping to $20.8 before rebounding slightly. As of writing, the token trades at $21.02, marking a 9.21% decrease on daily charts.
Data from blockchain monitoring platforms like Qwantifyio reveals that roughly 62.4% of January’s HYPE token distribution was sold over-the-counter (OTC). In contrast, 33.14% of the tokens were staked, with only 50,000 HYPE now remaining in team wallets, valued at approximately $1 million. This continual selling behavior by the team has deepened bearish sentiment, adding to the token’s instability.
Whales and Short Positions
A notable factor contributing to the market’s negative outlook is the activity of whale investors. Reports from Onchain Lens confirmed that a prominent investor opened a short position for 928,898 HYPE tokens, worth $19.89 million. Additionally, the Long Short Ratio remains below 1, specifically at 0.89, indicating that most market participants expect the downtrend to continue.
According to CoinGlass, Hyperliquid’s Derivatives Volume surged by 79.8% to $1.46 billion, alongside a 1.17% increase in Open Interest to $1.2 billion. Despite the heightened trading activity, the majority of participants are aligning with bearish positions, putting further pressure on the token’s price stability.
Technical Indicators Signal Further Decline
Technical analysis reflects a continuation of negative momentum. The MACD (Moving Average Convergence Divergence) has crossed below its signal line, reaching -1.1, signaling sellers’ dominance in the market. Similarly, the Directional Movement Index (DMI) dropped to 13, falling deeper into bearish territory and indicating a weaker market structure.
As selling pressure persists and market conditions remain unfavorable, HYPE risks breaching the critical $20 support level, potentially dropping to $18.7.
Take Action Smartly
Given the current market uncertainty, investors should exercise caution while trading HYPE. For those considering entering the crypto market, tools like automated trading platforms or trend analysis software can provide insights into market dynamics. For managing skin stress caused by prolonged research hours during volatile markets, consider Clinique Clarifying Lotion, which helps rejuvenate your skin.
Stay tuned for updates on the cryptocurrency market as trends evolve, but always perform your research before making high-risk financial decisions.
