Hyperliquid’s Wallet Woes: Will HYPE’s $20 Support Hold?

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In the midst of a market downturn so profound it could make a Victorian novelist weep, Hyperliquid [HYPE] has found itself in the familiar embrace of its May 2025 self.

The price of HYPE nosedived to a paltry $20.8, only to make a feeble attempt at recovery, now trading at a mere $21.02-down 9.21% as if the market had been handed a lemon and a warning label.

9 Wallets Offload $9.8M Worth of HYPE

As HYPE continued its descent into financial purgatory, the newly distributed tokens arrived like a pack of vultures, eager to pick the bones of the already weakened.

According to Qwantifyio, nine team wallets, presumably in a fit of existential despair, offloaded their HYPE to Flowdesk, netting a cool $9.8 million in the process.

Of the 1,125,766 HYPE doled out in January, a staggering 62.4% was sold via OTC, while 33.14% was staked-though one might argue that “staked” is a generous term for such a meager sum.

This suggests that Hyperliquid has been selling off the majority of its unstaked and unlocked coins, a strategy as prudent as a penguin in a snowstorm.

The team’s approach has deepened bearish pressure by increasing circulating supply, especially amid bear dominance. One might say they are “managing expectations” with the precision of a drunk accountant.

Hyperliquid Whales Flip Bearish

It comes as no surprise that, with Hyperliquid in a prolonged slump, investors-particularly the mighty whales-have turned bearish, shorting the market with the enthusiasm of a man discovering his coffee is decaf.

According to Onchain Lens, a whale has taken a short position on 928,898 HYPE, worth a tidy $19.89 million-proof that even in the crypto world, the big fish are still big, just a little more hungry.

Typically, when whales decide to take short positions, it suggests they expect the downtrend to continue. However, this bearishness in Futures is not isolated to whales; most participants feel the same. One might call it a “collective delusion,” but let’s not get too technical.

According to CoinGlass data, Hyperliquid’s Derivatives Volume surged 79.8% to $1.46 billion while Open Interest rose 1.17% to $1.2 billion-a testament to the market’s insatiable appetite for risk, or perhaps just a well-organized game of chicken.

When OI and Volume rise in tandem, it signals increased participation with traders taking either short or long positions. In this case, these traders have been taking short positions since the altcoin’s Long Short Ratio held below 1. With this metric at 0.89, it suggests most participants were bearish and expected prices to drop further-though one suspects they’ve been watching too many horror films.

Is $20 Support at Risk for HYPE?

Hyperliquid dipped to an 8-month low amid increasing selling pressure, accelerating the downward momentum. It’s as if the market has finally decided to take a nap on a bed of knives.

As a result, the altcoin’s MACD crossed below its signal line, dropping to a low of -1.1. A bearish move here suggested that sellers were in overwhelming control of the market. One might say they were “overwhelming” in the worst way possible.

At the same time, its Directional Movement Index (DMI) dropped to 13, further into the bearish zone, reflecting weaker structure. It’s a veritable symphony of despair, conducted by the ghost of Bear Market Past.

These two bearish moves, combined, signal potential trend continuation. Thus, if selling pressure continues to dominate, HYPE risks breaching $20 support and dipping to $18.7. A fate as inevitable as the sunrise, but with fewer rays of hope.

Final Thoughts

  • A Hyperliquid team-linked wallet, in a moment of fiscal recklessness, dumped 450K HYPE, valued at a mere $9.8 million.
  • Whales, ever the trendsetters, short the market as HYPE tests a key support level around $20-because nothing says “confidence” like betting against your own coin.

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2026-01-21 23:13