Hyperliquid: $12.5 Million Whale Activity Could Drive HYPE Token to 20% Surge
Amid the current market turbulence, the majority of digital assets have witnessed a significant decline, reaching levels where they could be considered undervalued.
Within this context, large investors have identified Hyperliquid [HYPE] as an attractive investment opportunity, pouring millions of dollars into the token.
Big Investors Purchase $12.50 Million Worth of HYPE Tokens
In a recent update from Lookonchain, a platform that tracks blockchain transactions, it was revealed that crypto whales have allocated $12.50 million in USDC to acquire Hyperliquid tokens within the last 48 hours.
Alongside this increasing interest and confidence from significant investors, day traders are also joining the trend, as indicated by Coinglass, an on-chain analytics company.
Presently, long positions are dominating among day traders, showing a strong bullish sentiment prevailing in the market.
Analysis further highlights that traders are overly committed at the $19.68 level on the long side, with holdings worth $3.09 million. Conversely, at $21.50, traders on the short side are heavily invested, with $1.25 million in short positions.
Combining these on-chain data points with the recent whale activities suggests a bullish stance, supporting the asset’s recovery.
Furthermore, the significant accumulation of HYPE tokens by high-net-worth individuals, alongside optimistic trader sentiment, has positively influenced the price of HYPE.
Currently, HYPE is trading around $21, marking a more than 13% increase in the last 24 hours.
This uptrend is largely attributable to continuous buying by whales and favorable market movements.
Price Action and Future Prospects of Hyperliquid
As per the technical analysis by CryptoCrypto, following a recent 26% drop, HYPE has hit a critical support level at $19.80, known for triggering strong price rebounds.
Historical data reveals that whenever the token reaches this support level, it tends to witness substantial buying pressure and upward momentum, potentially explaining the latest whale purchases.
Considering the historical price patterns, sustaining above the vital support level could pave the way for a 20% surge, aiming for the $25.50 milestone in the near future.
Currently, HYPE’s Average Directional Index (ADX) stands at 15, signaling a relatively weak momentum strength.