Hyperliquid whale activity surges as HYPE hits a new ATH: Can the momentum hold?

Since bouncing back from a $38 slip, Hyperliquid has been on an explosive uptick, reaching a new all-time high of $62.

As of this writing, Hyperliquid traded at $57, up 23% on weekly charts, reflecting strong upward momentum. With the altcoin’s record-breaking rally, whale activity has surged on both the sell and buy sides.

Hyperliquid whale moves $36 million in $HYPE

With Hyperliquid [$HYPE] showing strong upside, some whales have jumped on the Spot market and cashed out.

According to Lookonchain, Loracle.hl deposited 616,675 $HYPE, worth $36.76 million, into Hyperliquid and has already sold 563,3k $HYPE.

So far, the wallet still holds 53.33K $HYPE, worth $3.06 million, which the whale is likely to sell as well. When whales sell their holdings during an uptrend, it suggests profit-taking or repositioning.

For Loracle, it seems he sold his $HYPE holdings on the Spot to fund his short position and avoid liquidation as prices surged. On this side of the market, the whale still holds 1.8 million $HYPE worth $103.7 million short, with an unrealized loss of $22 million.

a16z whale accumulates 261,250 $HYPE for $15.2 million

Although some whales have sold, others have continued to accumulate $HYPE despite the rising market value.

Lookonchain reported that an a16z-linked whale continued to accumulate, purchasing another 261,250 $HYPE worth $15.2 million.

After the recent purchase, the whale increased total holdings to over 1.3 million $HYPE worth $148.5 million. With $HYPE trading around $57, the whale currently sits on an unrealized profit of $33 million.

The whale’s continued accumulation signals strong confidence in the market and anticipates further gains.

Furthermore, exchange activity also echoed this accumulation spree. In fact, outflows have outpaced inflows over the past week.

On the 22nd of May, for example, Spot Outflow rose to $215 million, while inflows dropped to $197.9 million. As a result, Spot Netflow dropped 1609% to -$17.12 million.

Such a massive drop in Netflow suggests that demand for $HYPE remains extremely elevated. Traditionally, higher exchange outflow reduces supply, thus raising scarcity, a recipe for a stronger upward momentum.

Can $HYPE’s upside momentum hold?

Hyperliquid has experienced strong upward momentum amid sustained market demand, especially from whales. As such, bullish pressure on the market has continued to strengthen.

Looking at the ADX and the DI momentum indicator, the positive index has continued to rise, reaching 45. At the same time, ADX rose to 26, signaling the trend’s strength.

Likewise, the Stochastic Momentum Index (SMI) rose to 75, further confirming this momentum. Taken together, these indicators signal the likelihood of the trend’s continuation.

Therefore, if prevailing market conditions hold, Hyperliquid will reclaim $60 and aim for another ATH. However, if profit takers jump in and increase spending, $HYPE will retrace to $47.

Final Summary

• Hyperliquid whale Loracle sold 563,345 $HYPE, worth $33.59 million, to cover a $103.8 million short.
• An a16z-linked whale continued accumulation, adding 261,250 $HYPE worth $15.2 million, raising total holdings to 1.3 million $HYPE.