HYPE Price Surges Amid Shrinking Unrealized Losses for Largest On-Chain Long Position

Hyperliquid's native token, HYPE, has risen over 13% since Jan 2, reaching a high of $27.40. Despite the rally, the largest on-chain long position in HYPE remains in a challenging position. This whale account, known as "Long-Term Bullish on HYPE," continues to face a $17 million unrealized loss. The position's average entry price is $38.6, with a liquidation price of $20, and a current position size of $36.44 million according to on-chain data.

The whale's position has not yet turned profitable despite the recent upward trend in HYPE's price. However, the unrealized loss has shrunk from $20 million to $17 million since the beginning of January. This partial recovery suggests that the price movement has provided some relief to the largest HYPE holder on Hyperliquid according to market analysis.

The whale's position was opened prior to Robinhood's announcement of HYPE spot trading on Oct 23. This timing has led to community speculation of insider knowledge. The position has remained largely unchanged in the two months since the announcement, and the unrealized losses remain significant despite the recent price rise according to on-chain tracking.

Why Did This Happen?

The whale's position is a key indicator for on-chain activity in HYPE. Its entry timing, before the Oct 23 Robinhood announcement, raises questions about market information flow. While the whale's strategy is still unprofitable, the recent price increase has reduced the magnitude of losses.

Market observers have noted that the whale's position is one of the largest and most scrutinized in the HYPE ecosystem. Its average price of $38.6 means it would require a sustained price rally above that level to break even. Analysts are watching to see if the current price momentum can continue to reduce the losses according to market analysis.

What Are Analysts Watching Next?

The unrealized loss has reduced by $3 million since the start of the year, indicating that the whale is partially recovering. The position's current size remains significant, suggesting it is a key holder in the HYPE market. However, the account has not yet taken profits or reduced its exposure according to market reports.

HyperInsight, a key monitoring source, has highlighted the whale's activity as a critical point for the HYPE market. Analysts are tracking the position's evolution, including whether it will be closed out or if the losses will shrink further as the price continues to move according to on-chain data.

The price movement in HYPE is being analyzed for broader implications. The token's performance is tied to its on-chain activity, and the whale's position is a focal point in that analysis. Market observers are assessing the potential for further gains and whether this whale might shift strategy as the price continues to rise according to market analysis.