Hyperliquid [HYPE] has gained 2.85% in the past 24 hours at press time, with its weekly gains hitting 27%. Notably, the altcoin made a new peak after its price surpassed $97 on the 23rd of September.
Hyperliquid‘s rally is driven by its continuous buyback and burn program alongside capital inflows from market participants. However, the potential distribution from market makers could cap HYPE’s uptrend.
HYPE token burns peak as whales position
To start with, Hyperliquids burn program has tightened supply. To date, over 48.86 million HYPE, worth more than $4.76 billion, have been permanently removed from circulation.
Additionally, whales were positioning. For instance, a mysterious whale bought another 373,730 HYPE valued at $36 million. This brought the whales total holdings to about 4.7 million tokens worth $400 million in just a month.
Source: Arkham
Similarly, Hyperliquid Strategies is not slowing down, having accumulated 33.60 million HYPE worth $3.20 billion. This is equivalent to 15% of the circulating supply and 3% of the total supply.
Even from a general market outlook, HYPE was still being bought. In fact, on Hyperliquid, its Open Interest (OI) reached an all-time high of $18 billion as the price peaked.
Hyperliquid price action – Correction or continuation？
Hence, HYPE was making new highs as its price respected a rising trendline support. The altcoin has bounced off this level four times, but it traded far from this mean position.
At press time, the MACD was bullish, but the bars show the strength is decreasing. Short liquidations, which dominated the past week, have now eased in scale.
Source: HYPE/USDT on TradingView
Looking at the mean position regarding price, HYPE is likely to retest the slanting support or levels at $88, $75, or $70. Likewise, a continuation cannot be overlooked bearing in mind the overall crypto market strength.
Will Wintermutes selling cap the uptrend？
Meanwhile, some institutions were starting to sell after HYPE peaked. As per Onchain Lens, Wintermute started to move its tokens heavily to major CEXs. This indicates profit-taking from some institutions.
At the same time, there was a massive wall of shorts defending the $100 mark. This selling pressure might trigger a pullback.
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The heatmap showed more than $2.91 million in liquidation leverage was sitting at $98.48, that is, above the current price. On the other hand, more than $3.39 million was positioned at $94.66, below price.
Source: CoinGlass
Therefore, HYPEs next move hinges on all these factors combined. But it is unclear which direction, as there are both bullish and bearish signals.
Final Summary
- Hyperliquids mysterious whale bought $36 million, bringing its total position to $400 million as burned HYPE tokens reached 48.86 million.
- HYPE price action hit a new peak as bullish momentum declined, potentially due to profit-taking.