Hyperliquid falls 4% as large holders secure $5M in gains

Key takeaways

• Hyperliquid (HYPE) dropped 4% on Friday to trade near $78, extending its ongoing pullback.
• Hyperliquid Strategies (PURR) has submitted an application for futures commission merchant (FCM) registration to facilitate regulated perpetual futures trading for US clients.
• Data from Santiment indicates that four major whale wallets locked in a combined $5 million in profits after closing out their HYPE holdings.

Hyperliquid (HYPE) lost 4% on Friday, changing hands around $78 as profit-taking from major investors weighed on the token, despite recent news regarding the protocol’s potential push into the US derivatives market.

This downturn follows a recent upward surge that briefly propelled HYPE close to $97 before selling pressure resumed.

On-chain analytics provider Santiment noted that four significant wallets collectively secured roughly $5 million in profits after liquidating their holdings, compounding doubts about whether the recent price rebound can endure.

Hyperliquid Strategies seeks CFTC approval for US perpetual futures

Hyperliquid Strategies revealed its FCM filing alongside its third-quarter financial report published on Thursday.

The firm aims to create a regulated intermediary capable of maintaining US customer accounts for permissioned derivatives markets hosted on Hyperliquid’s infrastructure.

Pending required approvals, the proposed setup would function under the regulatory guidelines of the Commodity Futures Trading Commission.

Under this planned architecture, independent operators would be able to deploy and oversee permissioned markets utilizing Hyperliquid’s HIP-3 framework.

These operators would shoulder the responsibility of complying with relevant regulatory standards, while the underlying blockchain maintains its role as a neutral infrastructure layer.

Should it receive approval, the FCM registration could enable Hyperliquid Strategies to assist in offering perpetual futures products to US participants.

Despite these favorable regulatory updates, Hyperliquid’s native token has had difficulty maintaining its recent advances.

Santiment reported Thursday that four large whale wallets liquidated their HYPE long positions, pocketing an aggregate total of approximately $5 million in gains.

These transactions occurred on the heels of a robust rally that temporarily drove HYPE toward $97. According to Santiment, referencing Score Arena, one particular wallet had been accumulating HYPE since late May prior to dumping its entire stake of roughly 310,000 tokens.

The address reportedly offloaded about $225,000 worth of HYPE in five-minute increments while the asset fluctuated between $94 and $95.

Available data indicates this trading strategy yielded about $2.4 million in realized profits.

Two other substantial wallets also liquidated their holdings following the price spike. One reportedly generated roughly $987,000 from 98,000 HYPE tokens, while a separate wallet secured close to $1 million from approximately 140,000 tokens.

Hyperliquid technical analysis: HYPE struggles below key moving averages

Hyperliquid’s daily chart demonstrates renewed downward pressure following its rejection near recent highs.

Trading near $77, HYPE sits beneath its short- and medium-term Exponential Moving Averages (EMAs), signaling that sellers remain in control of the near-term trend.

Furthermore, the cryptocurrency failed to hold a breakout past a descending resistance trendline, further highlighting doubts regarding the robustness of the prior rally.

Momentum indicators point to a continuation of the bearish trend. The daily Relative Strength Index (RSI) hovers around 42, which sits underneath the neutral level of 50.

At the same time, the Stochastic oscillator has drifted down to 23, bringing it close to oversold conditions.

Hyperliquid’s immediate support lies at $75.69, a horizontal price floor situated just under Friday’s trading range.

A decisive break below this zone could accelerate selling pressure and target the next support level at $67.63. Should bearish momentum pick up further, the correction could stretch down toward $61.16.

Looking upward, immediate resistance is found at the 100-day EMA near $78.10. Breaking back above this threshold could serve as an early indicator that selling pressure is subsiding.

Even so, buyers would then encounter a tougher resistance zone created by the 20-day and 50-day EMAs, spanning from $82.33 to $82.51.

Successfully clearing these barriers could pave the way for a move toward the next horizontal resistance at $85.04.

Beyond that point, the prior resistance area around $97.84 would serve as a primary upside objective if bullish momentum experiences a major resurgence.