Hyperliquid [HYPE] continued to attract capital as the price surged above $67 and entered fresh all-time-high territory. Typically, such breakouts require strong demand, and recent price discovery suggests buyers have continued to absorb the supply despite elevated valuations.
However, new highs also encouraged early holders to realize profits. One Genesis participant, for instance, who accumulated 1.5 million HYPE near $4.29, began locking in roughly $95 million in gains.
Previously, the wallet withdrew 500,000 HYPE, worth about $33 million, before transferring 211,001 HYPE, valued at close to $13.8 million, to Coinbase.
This development matters because dormant supply is returning to market circulation. And yet, the broader structure has been constructive.
In fact, the holder still controls 1.285 million HYPE worth over $85 million, limiting immediate supply expansion.
Meanwhile, HYPE has continued to trade near record highs, suggesting fresh liquidity may be absorbing profit-taking pressure. The next test is whether demand remains strong enough to offset further distribution as price discovery continues.
Whale bets against Hyperliquid’s rally
HYPE’s rally has continued to attract attention as price discovery pushes the token to fresh all-time highs. However, rising prices have also been encouraging traders to test whether momentum can sustain itself.
Against that backdrop, a whale opened a combined $12.8 million leveraged short across HYPE and Lighter [LIT]. The position includes 156,120 HYPE worth roughly $10.2 million at 10x leverage and 1.97 million LIT valued near $2.6 million at 5x leverage.
The move suggests some sophisticated participants may be expecting recent gains to cool down. And yet, the market has not confirmed that view so far. At press time, the positions were already nearly $200,000 in unrealized losses as HYPE held above $65.
This creates a pivotal setup. If demand keeps absorbing profit-taking and bearish bets, forced covering could extend the rally. Otherwise, weakening momentum may validate the whale’s contrarian position and increase volatility.
HYPE’s rally faces its biggest absorption test
Hyperliquid’s rally has continued to attract fresh capital, despite growing profit-taking near record highs. For example – Since 12 May, cumulative ETF inflows have climbed from $1.17 million to $100.48 million, reflecting sustained investor demand.
Momentum strengthened further as daily inflows peaked at $25.46 million on 20 May. Consequently, total net assets expanded from $30.82 million to $117.38 million within days. Even so, the balance still remains delicate.
Whales have started realizing profits while bearish positions emerge across derivatives markets.
If fresh capital continues to absorb distribution, HYPE could extend price discovery. Otherwise, slowing demand may gradually cool the rally’s momentum.
Final Summary
