Hyperliquid (HYPE) Whales Stake $93M Near 200 EMA, Rally to $74 Next?

Quick Take:

• Over the past 24 hours, two major crypto whales together added over 1.70 million Hyperliquid (HYPE) tokens worth $93.20 million.
• These acquisitions were recorded near a key support level and the 200-day Exponential Moving Average (EMA), signaling a potential rally.
• Meanwhile, another factor strengthening HYPE's bullish outlook is its persistent revenue generation alongside token burning. Over the past 24 hours, Hyperliquid burned $760.21K worth of HYPE.
• Hyperliquid Perps jumped from 12th to 5th place in the past 24 hours, generating $1.6 million in fees.

The recent developments around Hyperliquid (HYPE) signal that a major rally in the token could be on the horizon. Over the past 24 hours, the protocol has witnessed mass accumulation by crypto giants near the 200 EMA, recorded notable token burning and fee generation, and, together, these have strengthened HYPE’s bullish outlook.

Let’s see what exactly happened.

HYPE: Whale Accumulation and Token Burning

Recently, a crypto transaction tracker Onchain Lens and EmberCN shared posts on X revealing whale accumulation.

According to Onchain Lens, a newly created wallet received 724.88K HYPE tokens worth $39.73 million and staked it on Hyperliquid. Meanwhile, EmberCN reported that two wallet addresses suspected to belong to a16z transferred 979K HYPE tokens worth $53.53 million into Hyperliquid and then staked them.

These HYPE stakings by crypto giants show their confidence in the asset and also suggest its long-term potential.

In addition to the accumulation and staking, another factor which currently strengthening HYPE’s bullish outlook is the protocol’s persistent token burning. As per the Onchain Lens report, over the past 24 hours, Hyperliquid burned over $760.21K worth of HYPE tokens. So far, it has burned more than 46.19 million HYPE tokens worth $2.50 billion, equivalent to 4.62% of its maximum supply.

Additionally, a report from local media outlet MSB Intel further reinforces this bullish outlook. A post on X stated, "Hyperliquid Perps jumped to 5th from 12th in 24 hours, generating $1.6 million in fees."

All these developments seem to have played a key role in HYPE’s 3.45% price gain over the past 24 hours. Not only has the price surged, but market participants have also supported this gain, as reflected in trading volume, which climbed 30.50% to $294 million during the same period.

This surge in trading volume alongside the price jump hints that the current upward momentum may continue in the coming days.

Hyperliquid (HYPE) Chart Eyes 33% Price Jump

Besides all these developments over the past 24 hours, the TradingView daily chart flashes a bullish outlook for HYPE.

On the daily chart, it appears that the asset has successfully retested the 200 EMA, near key support level of $52. In fact, after plunging 30%, the price formed a descending trendline, which was broken by today’s price jump, opening the door for further upward momentum.

Based on the current price action, if the HYPE price remains above the 200 EMA and the $52 level, the bullish outlook remains intact. In this scenario, the asset could see a 33% price jump and reach the $74.30 level.

However, this bullish outlook could be invalidated if the price falls below the 200 EMA, or the $52 level. In this case, HYPE could face strong selling pressure and a sharp price decline.

HYPE Traders Turn Bullish

Not only are whale activity and price action strengthening HYPE’s bullish outlook, but derivatives data also show the same trend. CoinGlass shows that HYPE’s long/short ratio stands at 1.0973, climbing above the key threshold of 1, indicating strong bullish sentiment among traders.

All these developments, from whale activities to token burning, fee generation, bullish breakout, and traders' bullish sentiment, suggest that HYPE has a short-term bullish bias and may continue its upward momentum in the coming days.