Hyperliquid Whale Sells Millions as Altcoin Fights to Hold Key Support Level

A significant event has occurred in the Hyperliquid market as a whale, known as Cooker.hl, sold a substantial amount of HYPE for $1.8 million in USDC. This sale was made at an average price of $39.39 and the proceeds were subsequently deposited into Coinbase.

Although this sale may seem alarming, it is worth noting that Hyperliquid has managed to reclaim its key support level of $40. However, market momentum remains strongly bearish, with indicators suggesting a potential drop to $38 if the altcoin fails to close above $40.

The Aroon Indicator and Stochastic Momentum Index (SMI) both suggest that the downtrend is stronger than the uptrend, with lows occurring more frequently than highs. This indicates that sellers have significant control over the market.

Reduced activity in perpetual markets has also contributed to the market's weakness. Defillama data shows that Perpetual Volume dropped by over $1 billion, falling from $7.6 billion to $6.3 billion. Additionally, the market pullback has coincided with higher Futures selling volume, leading to a decrease in HYPE's Futures Netflow.