Hyperliquid's token HYPE recently broke through $67, entering a new price discovery range. After reaching a new all-time high, the market did not immediately weaken, indicating that new funds are still absorbing selling pressure at higher levels. However, as valuations rise, some early holders are beginning to realize profits.
Early holdings began to flow into the market.
An early participant who bought 1.5 million HYPE tokens at around $4.29 has begun locking in profits in batches. On-chain data shows that this address previously withdrew 500,000 HYPE tokens, worth approximately $33 million at the time, and then transferred 211,001 HYPE tokens, worth nearly $13.8 million, to Coinbase.
The actions of these addresses are attracting attention because the re-entry of long-dormant tokens into circulation often increases short-term selling pressure. However, this holder currently controls 1.285 million HYPE tokens, worth over $85 million according to the article, meaning that the new supply that can immediately enter the market is still limited for the time being.
Whale opens leveraged short position
As prices continue to reach new highs, some traders are beginning to bet on a cooling rally. The report mentions that a whale is simultaneously shorting both HYPE and Lighter's token LIT, with a combined position of approximately $12.8 million.
- 156,120 short positions in HYPE, with a notional value of approximately $10.2 million and leverage of 10x.
- 1.97 million LIT short positions, with a notional value of approximately $2.6 million and a leverage of 5x.
As of the time of this report, with HYPE still above $65, these short positions had incurred nearly $200,000 in unrealized losses. If prices continue to hold strong, short covering could further amplify upward volatility; conversely, if buying activity slows, the short sellers' predictions may be validated.
Funding acquisition becomes the next point of observation.
The article also noted that since May 12, related capital inflows have increased from $1.17 million to $100.48 million, indicating a significant increase in market demand recently. The highest single-day inflow occurred on May 20, reaching $25.46 million; during the same period, total net assets rose from $30.82 million to $117.38 million.
However, the current structure is not entirely optimistic. On one hand, the record high prices continue to attract capital inflows; on the other hand, early holders are starting to realize profits, and short positions have emerged in the derivatives market. Whether HYPE can maintain its high levels going forward depends on whether the new liquidity can continue to absorb selling pressure.
