Whales accumulate Hyperliquid during the dip, not the rally – Why?

Hyperliquid’s large holders have stepped in aggressively during the recent decline, adding clear numerical weight to the accumulation narrative. 

Whales accumulated 427,441 HYPE worth $11.58M at an average $27.09 over two months, while another added 398,830 HYPE worth $10M around $25.22 in just five days. 

Combined, whale accumulation now exceeds $21.5M near the current price range. 

Importantly, this buying occurred as price slid toward the $22–$24 zone, not during upside expansion. That behavior typically reflects conviction rather than momentum chasing. 

Moreover, whales accumulated above current price yet continue holding. Therefore, downside pressure appears absorbed rather than accelerated. 

This activity does not guarantee an immediate reversal. However, it significantly alters the risk profile near support.

Is the descending wedge nearing resolution?

HYPE continues to compress inside a well-defined descending wedge, with price trading just above the lower boundary near $22.26. 

This structure reflects weakening bearish momentum rather than strong trend continuation. 

The RSI was 35.26 at press time, with its moving average near 34.12, showing oversold conditions without fresh downside expansion. 

Importantly, recent candles show shallower lows compared to earlier declines from $48 and $35.92. That change suggests sellers lose control incrementally. 

However, resistance remains layered. The first reaction level sits near $29.94, while a broader breakout zone aligns closer to $35.92. 

Therefore, while downside exhaustion builds, confirmation still requires structure resolution. Volatility expansion now appears increasingly asymmetric toward the upside.

HYPE tightens available sell supply

Spot exchange netflows continue flashing negative, reinforcing accumulation behavior beyond price action alone. 

On the 23rd of December, HYPE price recorded a net outflow of approximately -$971K, extending a broader trend of persistent withdrawals. 

Earlier periods showed even deeper outflows exceeding -$30M to -$50M, highlighting heavy distribution already completed. Crucially, netflows have not flipped positive despite price weakness. 

That consistency matters. When assets leave exchanges during declines, holders usually reduce immediate selling intent. Therefore, available liquid supply continues shrinking near current levels. 

This dynamic does not trigger reversals instantly. However, it increases price sensitivity to demand shifts. 

As a result, even modest buying pressure can produce outsized reactions once structure breaks.

Top traders lean long into uncertainty

Binance top trader positioning shows a clear long bias despite ongoing price weakness.

As of the 23rd of December, 61.65% of top trader accounts remained long, while 38.35% held short positions, producing a long/short ratio near 1.61.

This bias persisted as price traded near $24, rather than unwinding aggressively. That behavior suggests expectations of a reaction rather than continuation. 

Importantly, positioning does not appear excessively crowded. Ratios remain below extreme optimism thresholds seen earlier in the trend. 

Therefore, professional traders show controlled confidence rather than blind conviction. 

When combined with whale accumulation, this positioning supports the idea that downside risk now faces increasing resistance near support.

HYPE funding resets as leverage pressure fades

Hyperliquid’s OI-Weighted Funding Rate reflected a clear cooldown in speculative positioning. At the latest reading, funding sat near 0.0047%, remaining slightly positive without spiking. 

Earlier periods showed sharp negative dips below -0.02%, signaling forced unwinds. 

That phase now appears complete. Current funding stability suggests leverage has reset rather than flipped aggressively bearish. 

This balance matters because it reduces liquidation-driven volatility. Moreover, neutral funding allows spot flows to dictate price direction more cleanly. 

Therefore, any breakout attempt from the descending wedge may develop without heavy derivative friction. In many historical setups, such resets precede structural reversals rather than continuation.

In summary, HYPE price sits at a critical inflection zone where accumulation, falling exchange supply, stabilizing leverage, and wedge compression converge. 

While confirmation still matters, conditions increasingly favor a relief-driven reversal rather than renewed downside acceleration.

Final Thoughts

• Whale accumulation and falling exchange supply reduce downside pressure near key support.
• Cooling leverage and wedge compression increase the probability of a relief-driven move.