Hyperliquid whale dumps $8.15M in HYPE – Will bears push price to $38?

During the broader market pullback, Hyperliquid [HYPE] fell from $45 to a local low of $40. At press time, it was trading at $41, up 0.6% on the daily chart.

Despite this minor rebound, the token declined 9.09% over the past week, leaving HYPE on the defensive as market sentiment, including among whales, turns increasingly bearish.

Whale dumps HYPE tokens worth $8.15M

After HYPE dropped to $40, whales exited the market to avoid further losses while locking in gains. According to Onchain Lens, a newly created wallet withdrew 199,999 HYPE from Bybit and sold it for $8.15 million at $40.77 per HYPE.

After the sale, the whale then withdrew funds from Hyperliquid and deposited them into Binance, thus completely exiting the market. Such a hasty decision to exit the market revealed the whale’s short-term panic, driven by fear of a potential drop from current levels. 

Coupled with that, exchange activity also echoed this selling spree. According to CoinGlass data, sellers have dominated the market over the past week. 

Over the said period, the altcoin recorded $259.9 million in spot inflows compared to $236.2 million in outflows. As a result, the Spot Netflow climbed to $23.69 million as of writing, a clear sign of aggressive selling. 

Traditionally, increased selling activity, especially from whales, has weakened the market, leading to lower prices.

Whales are aggressively shorting

In addition to continued whale selling, those active on the Futures side are aggressively shorting. Onchain Lens reported that a whale opened a HYPE short position with 5x leverage valued at $13 million.

With HYPE’s price fluctuating significantly, this position is already 104.9k in profit, but the whale has spent $2.5k in funding.

Interestingly, most market participants are currently shorting the market. As such, the altcoin’s Long Short Ratio dropped below 1 to 0.95 at press time, suggesting that market participants were bearish and expected prices to drop in the near term.

Is $40 support at risk?

Hyperliquid has faced increased bearish pressure, especially from whales, since the market retraced to $40. As a result, the downside momentum has strengthened.

In fact, the Momentum Index (MOM) dropped sharply from 5 into negative territory at -1.39, signaling weakening market strength as bears take control of short‑term momentum.

Likewise, the Stochastic Momentum Index (SMI) dropped into negative territory around -19.3, further validating this bearish strength.

Typically, when these momentum indicators are set this way, they signal the likelihood of trend continuation. Thus, if sellers, including whales, continue selling at $40, this support will break, and the price will fall to $38.

However, if this level holds, the altcoin could bounce back to $43.

Final Summary

• Hyperliquid whale hurriedly offloaded 199,999 HYPE for $8.15 million.
• HYPE faces extreme sell-side pressure, while whales are shorting the market.