Hyperliquid (HYPE), a cryptocurrency, has been trending upwards, consistently establishing higher lows since recovering from a recent dip to $34. The altcoin recently reached a local high of $37.3 and has surpassed its 9-day moving average, signaling growing bullish momentum.

Whale Activity Impacts Market Dynamics

Despite the positive trend, substantial selling pressure from a large HYPE holder is impacting the market. On-chain data reveals that one whale, identified as Loracle.hl, has completely liquidated their HYPE holdings, selling 450,000 tokens for $15.012 million.

Significant Liquidation on Binance

This selling spree has been ongoing for four days, with approximately $12.725 million of the proceeds already deposited into the Binance exchange. This action indicates bearish sentiment and a lack of confidence in HYPE’s future price movement.

Exchange Netflow Reflects Selling Pressure

Market data corroborates this bearish outlook. Coinglass data shows Hyperliquid Spot Netflow has been positive for two consecutive days, reaching $1.36 million, up from $1.1 million the previous day. A positive netflow indicates more deposits than withdrawals, signaling aggressive selling.

Momentum Shows Resilience

Historically, increased selling from whales often precedes market weakness. However, HYPE has demonstrated surprising strength, with demand from other market participants absorbing the selling pressure.

Technical Indicators Point to Continued Gains

While Loracle.hl has been selling, HYPE has shown increasing upward momentum. The Stochastic RSI has climbed from a low of 3 to 33, indicating growing buyer involvement. The Moving Average Cross also validated this strength, as the altcoin surpassed its 9-day moving average.

If the upward momentum continues, HYPE could potentially surpass the 21-day moving average at $38 and target a resistance level of $40. Conversely, intensified whale activity could cause HYPE to breach the $36 support level and fall back to $34.

Current Price Trend and Outlook

The current price trend of HYPE is clearly upward, consistently establishing higher lows after recovering from $34. This pattern suggests stability and investor confidence.

This analysis is based on information originally reported by AMBCrypto, a digital news source for cryptocurrency enthusiasts established in 2018.