06.07.2025 13:09

A significant sell-off of Hyperliquid (HYPE) tokens by a large holder has raised concerns about a potential price drop. A whale recently unloaded 215,850 HYPE tokens, incurring a loss of approximately $290,000, according to data from Onchain Lens. This transaction, totaling $8.37 million, occurred amidst declining market activity, fueling speculation of further price declines.

The recent price stagnation of HYPE, fluctuating between $38 and $41 after reaching an all-time high of $45.7 three weeks prior, reflects a lack of buyer conviction. This price inaction correlates with a dramatic drop in daily trading volume, plunging to a three-month low of $143.3 million, as reported by Artemis. This significantly reduced trading volume points to diminished investor interest and a potential market pullback. Existing investors appear to be panic-selling, with major holders leading the exodus.

This bearish sentiment is further corroborated by on-chain data. The Weighted Sentiment metric plummeted to -1.229, a monthly low, suggesting widespread fear rather than profit-taking. The whale's decision to sell at a loss highlights a growing lack of confidence and a preemptive move to mitigate further losses. The derivatives market also reflects this downturn.

The perpetual volume for HYPE contracts has significantly decreased from a recent high of $8.7 billion to $2.436 billion, as reported by DefiLlama. This reduced volume suggests a decline in leveraged trading and diminished appetite for directional bets. Moreover, the funding rate on Coinalyze has turned negative (-0.0006), clearly indicating a shift towards a bearish sentiment among futures traders, with a majority now anticipating short-term price declines. Despite these overwhelmingly bearish indicators, however, the situation remains nuanced, suggesting potential for further development.