Hyperliquid News: Whale Movements Trigger Liquidity Concerns, Why Does HYPE Price Structure Remain Continuously Fragile?

Recently, on-chain fund movements surrounding Hyperliquid (HYPE) have once again attracted market attention. The address associated with the crypto investment firm Fasanara Capital transferred approximately 25,000 HYPE tokens to a major trading platform, valued at about $660,000 based on the current price. This move was quickly interpreted by the market as a potential sell signal, further amplifying short-term liquidity pressure amid an already fragile price structure.

It is worth noting that the same address previously received around 500,000 HYPE tokens from a burn address, temporarily alleviating concerns about increasing circulating supply. However, compared to public inflows, on-chain deposits to trading platforms tend to better reflect genuine intent. Even if actual selling has not yet occurred, such transfers can influence short-term expectations and liquidity structure. Currently, the address still holds over 570,000 HYPE tokens, most of which have not yet entered the market, but even small-scale deposits can impact trader sentiment.

From a technical perspective, HYPE’s daily chart remains within a clear downtrend channel, with the overall trend weak since last year. Recently, the price found some support in the $22–24 range and rebounded, but the rebound was quickly halted near the channel’s midline, failing to produce a trend-breaking move. The previous key support zone at $28–30 has turned into a clear resistance area, with multiple failed attempts to break through, indicating ongoing selling pressure during rebounds.

Momentum indicators also lack signs of reversal. The RSI has been hovering around 40 for an extended period, reflecting more of a weak consolidation than a trend reversal. This suggests that the current upward movement is more of a technical correction within a downtrend.

The derivatives market structure also remains cautious. In short-term long and short positions, shorts hold a slight advantage but have not become extremely crowded. Liquidation data shows that long positions are being closed at a significantly higher scale than shorts, indicating that the decline is mainly a slow unwinding of long leverage rather than panic-driven liquidations.

More concerning is that the open interest-weighted funding rate remains positive. This indicates that, in the downtrend, longs are still paying for their positions, and structural mismatches are accumulating. If selling pressure intensifies, these longs could face greater forced liquidation risks.

Overall, the whale transfer activity introduces new sell-side uncertainty for HYPE but has not yet evolved into an aggressive sell-off. The price remains confined within the downtrend channel, and the funding rate and liquidation structure reveal vulnerabilities in leverage. In the absence of clear incremental positive signals, HYPE is likely to continue range-bound in the short term, with limited rebound potential. Only when on-chain deposits significantly increase should deeper downside risks be considered.