Whale Traders Bullish on HYPE Token as Retail Sentiment Dips
Whale traders have established their most aggressive net-long positions in eight months on Hyperliquid’s HYPE token, even as retail investors hold a 12-month bearish extreme. Data suggests this divergence typically resolves in favor of the larger players.
Diverging Positions
Data from Alphractal indicates that since early May, large traders have been quietly accumulating leveraged long positions, while retail participants have turned bearish and begun short selling into the rising trend. Historically, such a split has triggered a wave of short covering by retail traders, pushing prices higher. At the time of reporting, HYPE was trading at $62.05, with a 24-hour trading volume of $830 million and a market capitalization exceeding $15 billion. The token experienced a 2% dip over the past day, but its technical outlook remains bullish. Prices are trading well above the 20-day simple moving average of $47.97 and have broken above the upper Bollinger Band, which analysts suggest signals strong momentum but also potential short-term overextension.
Technical Analysis and Key Levels
Crypto analyst Bitcoin Meraklisi noted that HYPE closed a daily candle above $59.54, a level that had previously acted as significant resistance. Based on the cup formation on the chart, this breakout opens a technical path toward $170, representing a roughly 175% increase from current prices. The $59.54 zone is now considered critical support. If the price holds above this level, traders believe the bullish case remains intact; failure to do so could jeopardize the breakout.
Institutional Interest Grows
In related news, Grayscale has filed a third amendment with the SEC regarding a potential Hyperliquid ETF. Payments firm MoonPay has also launched access to USDH and USDC through the Hypercore network, reflecting growing institutional interest in the Hyperliquid ecosystem.
Broader Market Context
The broader rally began in mid-May, following a period of consolidation in April. Prices have risen sharply since then, and the Moving Average Convergence Divergence (MACD) indicator has been trending upward in positive territory, with increasing green histogram bars supporting the move. The Bollinger Bands have widened significantly, indicating elevated volatility. TradingView data shows a sharp price increase from early February lows to its current range.
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