HYPE Faces Sell-Side Pressure Amid Whale Deposits to Bybit and Mixed Technical Indicators

Whale deposits to Bybit have introduced sell-side risk for HYPE, though most supply remains off-exchange, keeping short-term pressure moderate according to analysis.

Price remains in a descending channel with weak momentum, and derivatives positioning shows a slight bearish tilt as reported.

Hyperliquid experienced significant growth in 2025, with user count rising from 300,000 to 1.4 million and daily trading volume peaking at $32 billion according to data.

Whale activity has re-entered focus after Fasanara Capital transferred 25,000 HYPE, worth roughly $667,700, to Bybit, introducing visible sell-side risk according to reports. Earlier, the same wallet received 500,000 HYPE, valued near $13.3 million, from a burn address, which initially reduced circulating supply pressure as noted. Despite the Bybit transfer, the wallet still holds about 575,000 HYPE, worth nearly $15.4 million, keeping most supply off-exchange according to data.

HYPE continues trading within a well-defined descending channel on the daily chart, reflecting persistent lower highs since September as analysis shows. Buyers recently defended the lower channel boundary near the $22–$24 zone, triggering a modest rebound according to reports. However, momentum quickly stalled below the channel midline as observed. That failure reinforces the broader bearish structure according to data. Moreover, price remains capped beneath the $28–$30 region, a former support zone that now acts as resistance as reported. Each recovery attempt fades faster, suggesting sellers remain active on rallies according to analysis.

Derivatives positioning shows a slight but notable bearish tilt as data indicates. On the 4-hour Long/Short Ratio, shorts account for roughly 52% of positions, while longs sit near 48% according to reports. This imbalance signals growing downside expectations rather than panic as noted. Importantly, shorts have increased gradually, not aggressively according to analysis. This behavior often reflects traders positioning ahead of expected sell pressure, rather than reacting to one as reported.

Liquidation data adds another layer of nuance according to data. Recent sessions show long liquidations totaling about $557,000, while short liquidations remain near $9,700 as observed. This imbalance indicates downside moves continue flushing leveraged longs rather than forcing short exits according to reports. However, liquidation spikes remain contained as analysis shows. They lack the scale associated with cascading selloffs according to data. As a result, downside pressure appears absorbed rather than accelerating as noted.

OI-weighted funding remains positive, hovering around +0.0148%, despite bearish price structure and rising short dominance according to reports. This dynamic matters. Positive funding shows longs continue paying to maintain exposure, even as price struggles as data indicates. That persistence creates vulnerability. If selling pressure expands, these longs face increasing liquidation risk according to analysis. Moreover, positive funding during downtrends often signals misaligned positioning as reported. While it reflects confidence, it also increases downside asymmetry according to data.

What Are the Short-Term Implications of Whale Deposits for HYPE?

Whale deposits to Bybit have raised concerns over short-term liquidity and price stability as noted. However, the wallet still holds the majority of its HYPE off-exchange, which mitigates immediate selling pressure according to analysis. This partial deposit reflects strategic positioning rather than aggressive liquidation as reported. Market watchers are monitoring whether this represents tactical distribution or testing market depth according to data.

Despite the deposits, the wallet's large off-exchange holdings suggest the whale is not fully distributing its position as analysis shows. This dynamic introduces uncertainty in the market, as traders weigh the significance of the deposit according to reports. Some interpret it as a potential bearish signal, while others argue it is more of a test of liquidity and market depth as noted.

What Does the Technical Outlook Suggest for HYPE's Near-Term Price?

Derivatives data and technical indicators suggest a mixed outlook as reported. Price remains in a descending channel, with the lower boundary acting as support and the upper boundary as resistance according to analysis. Repeated failures to break above the channel midline reinforce the bearish structure as observed. Meanwhile, the RSI hovers near the high-40s, indicating stabilization rather than trend reversal according to data. Until HYPE reclaims the upper channel boundary decisively, rebounds likely represent corrective moves rather than directional shifts as reported.

Shorts hold a slight advantage in the derivatives market, with 52% of positions compared to 48% for longs as noted. This imbalance reflects growing downside expectations according to analysis. However, the shift is gradual, suggesting traders are positioning ahead of expected sell pressure rather than reacting to one as data indicates. This measured approach leaves room for volatility but does not indicate panic according to reports.

Positive funding rates and repeated long liquidations highlight misaligned leverage according to analysis. Longs continue paying to maintain exposure despite bearish price structure, creating vulnerability as reported. If selling pressure expands, these longs face increasing liquidation risk according to data. Positive funding during downtrends often signals misaligned positioning as noted. While it reflects confidence, it also increases downside asymmetry according to reports.

What Are the Key Market Risks for HYPE?

Capital inflows and whale activity suggest both accumulation and distribution signals as reported. Whale deposits to Bybit introduce visible sell-side risk but do not trigger aggressive distribution according to analysis. The wallet still holds a significant amount of HYPE off-exchange, keeping most supply away from the market as noted. However, even small deposits can influence short-term liquidity according to data.

Exchange deposits and derivatives positioning remain key risk factors as observed. Whale activity and derivatives positioning show mixed signals, with some indicating accumulation and others suggesting distribution according to reports. This duality complicates market interpretation as analysis shows. Investors must assess whether these signals represent strategic positioning or early signs of bearish sentiment according to data.

Market watchers are also tracking how whale actions align with larger trends, such as token unlocks in January as reported. These unlocks could introduce additional selling pressure and influence market dynamics according to analysis. The combined position in HYPE and Solana suggests a strategic allocation of capital across HyperLiquid's native token and Solana as noted.

In summary, whale deposits and derivatives positioning reflect a complex market environment for HYPE according to data. While some signals suggest bearish sentiment, others indicate strategic positioning and accumulation as reported. Investors must navigate this duality carefully, as the market remains range-bound with rallies capped and deeper downside emerging only if selling accelerates according to analysis.