Hyperliquid [HYPE] faced strong downward pressure as the broader market weakened following lower-than-expected Consumer Price Index (CPI) data.
HYPE breached $80 support and fell to $78 before bouncing back. At press time, Hyperliquid traded around $79, down 1.7% over the past day.
Yet one whale chose to stake over $100 million in HYPE, taking a longer view as derivatives selling persisted.
Why did a Hyperliquid whale stake $100M?
With Hyperliquid below the $98 recorded three weeks earlier, some investors turned to staking for yield.
According to Onchain Lens, three new wallets linked to one whale staked 1.255 million HYPE, worth $100.43 million.
The move suggested a willingness to keep those tokens committed to staking rather than immediately available for sale.
And the whale had company. Hyperscreener data showed over 439.9 million HYPE staked, worth $35.2 billion and representing roughly 44% of supply.
Reported average Daily Staking stood at roughly 120,000 HYPE. Staking can limit immediately available supply, although it does not guarantee stronger prices.
Spot Exchange Netflows offered another sign of tokens moving away from trading venues..
At press time, Spot Netflow stood around -$2.4 million, compared with -$11 million the previous day. Outflows continued, but their net value narrowed considerably. These withdrawals coincided with staking activity, although the figures did not establish a direct connection.
Derivatives Remain a Thorn
Although staking continues to reduce the supply available for immediate sale, derivatives markets have turned stubbornly bearish.
Over the past day, for example, Hyperliquid saw $673.4 million in Futures Outflows and $592 million in inflows. Over this period, Netflow fell to- $80 million, suggesting that more capital flowed out of the futures market than entered it.
For perpetuals, especially on Binance, sell volume rose to 2.02 million, with Net Buying at -3.5 million. High sell volume suggested that more sell orders were executed on Binance.
These two metrics suggest that the derivatives market is currently contributing to the selling pressure.
What’s Next for HYPE?
Although whales are turning to staking, it remains insufficient to absorb the pressure from derivatives.
For that reason, the market still leans bearish. A look at the Relative Strength Index (RSI) confirms this observation.
The RSI fell deeper into the bearish zone, reaching 39 and reflecting increased bearish pressure. When this indicator sits at such low levels, it signals that weakness may persist.
If selling pressure continues, Hyperliquid is likely to extend its decline and fall to $75 in the short term. However, if staking manages to absorb the selling pressure, HYPE could defend $80 and target a move to reclaim $88 in the short term.
Final Summary
- Hyperliquid whale staked 1.255 million HYPE, worth $100.43 million.
- Hyperliquid [HYPE] breached the $80 support and fell to a low of $78 before slightly rising to $79.