Whale wallets book $5 million in HYPE profits as token slides 4%

Article highlights

• Hyperliquid (HYPE) dropped 4% on Friday to around $78, continuing its recent downward move.
• Hyperliquid Strategies (PURR) submitted an application for FCM registration, which would allow regulated perpetual futures for US clients.
• Santiment reports that four sizable whale wallets have realized roughly $5 million in combined profits, coming after they closed their HYPE positions.

On Friday, Hyperliquid (HYPE) traded down 4% to roughly $78. Profit-taking by larger holders put pressure on the token, even against the backdrop of positive news regarding the protocol's possible move into the US derivatives space.

The drop came after a brief rally that took HYPE close to $97, prior to selling pressure reasserting itself.

According to blockchain analytics provider Santiment, four major wallets harvested roughly $5 million in profits by exiting their positions. This has raised further questions about the durability of the token's price recovery.

Hyperliquid Strategies applies to CFTC for US perpetual futures approval

Thursday saw Hyperliquid Strategies announce its FCM filing, which accompanied the release of the company's third-quarter financial results.

The firm plans to create a regulated intermediary that can manage US customer accounts for approved derivatives markets built on Hyperliquid's platform.

Subject to regulatory clearance, the proposed setup would function inside the Commodity Futures Trading Commission's framework.

The design allows independent operators to start and oversee permissioned markets via Hyperliquid's HIP-3 framework.

Operators would take on the responsibility of meeting relevant regulatory standards, with the blockchain layer itself remaining a neutral piece of infrastructure.

If it gets the go-ahead, the FCM registration could let Hyperliquid Strategies help introduce perpetual futures products to the US market.

Even with these favorable regulatory moves, the Hyperliquid native token has had difficulty holding onto its recent price increases.

Santiment noted on Thursday that four significant whale wallets closed out their long HYPE positions, generating about $5 million in profit collectively.

These transactions followed a rally that propelled HYPE toward $97. Santiment, citing Score Arena, reports one wallet started building its HYPE holdings in late May before selling off its total position of around 310,000 tokens.

That same address is said to have sold roughly $225,000 in HYPE every five minutes while the token was trading in the $94-$95 range.

According to the data, this method yielded approximately $2.4 million in realized profit.

Two other large wallets also sold out after the rally. One made about $987,000 from 98,000 HYPE, while a second generated close to $1 million from roughly 140,000 tokens.

Hyperliquid technical view: HYPE trades below key moving averages

Hyperliquid is dealing with renewed bearish pressure after being rejected from its recent highs.

Trading near $77, HYPE is below its short and medium-term Exponential Moving Averages (EMAs), a sign that sellers are still in control of the near-term direction.

The digital asset also couldn't sustain a breakout above a descending resistance trendline, deepening worries about the previous rally's strength.

The bearish picture is backed by momentum gauges. The daily RSI sits around 42, beneath the neutral mark of 50. The Stochastic oscillator, meanwhile, has dropped to near 23, putting it in oversold territory.

Immediate support for Hyperliquid is at $75.69, a horizontal level right under the price reported for Friday.

A sustained move below that point could amplify selling pressure and put the next support, at $67.63, in play. Should bearish momentum pick up, the correction could stretch down to $61.16.

On the positive side, resistance is found at the 100-day EMA near $78.10. Recovering that level might be an early signal that selling pressure is abating.

But buyers would then hit a stronger wall of resistance set by the 20-day and 50-day EMAs, from $82.33 to $82.51.

A sustained rally past those hurdles could clear a path toward the next horizontal resistance, at $85.04.

Past that, the recent resistance zone around $97.84 could become a target if bullish momentum gathers significant strength.