- HYPE faces a major supply wall with shorts positioning for a reversal
- SUI lost its 11th spot as HYPE added $6.86 billion in market cap within a month
It looks like Hyperliquid [HYPE] is on a tear right now, pulling in capital from just about everywhere. However, according to AMBCrypto, with a 110% month-over-month ROI, this move isn’t just explosive. Instead, it’s strategic.
Sui [SUI] has become the latest casualty, losing its 11th spot in market cap to HYPE, with the latter adding a staggering $6.86 billion in valuation over the past month alone. For perspective, that’s roughly equivalent to PEPE’s entire market cap.
Now, HYPE may be tapping into a major supply wall. Opportunistic shorts are loading up, eyeing a reversal. Hence, the question – Will the short pressure cool things down or could it instead spark the next explosive leg up?
Betting against the trend – Smart move or risky bet?
Coinglass data (4H) revealed that 60.7% of accounts across exchanges have been betting bearish. In other words, shorts may be circling.
That fits right into AMBCrypto’s take. With HYPE just 4.44% from a fresh all-time high, traders are jumping in, smelling a classic reversal setup. Technically speaking, this move might feel like textbook timing.
And, the warning signs are flashing too. At the time of writing, HYPE’s RSI was hovering at 85, screaming “overbought.” All while the price already slipped 2.58% intraday, tapping a low of $37.53.
Source: TradingView (HYPE/USDT)
Now, that’s the kind of heat that invites short interest, and maybe even sparks some profit-taking. Case in point? A once-dormant whale just made a power move.
According to Lookonchain, the wallet scooped up 1.45 million HYPE between 7 December 2024 and 9 January 2025, at an average cost basis of $18.39 – Totaling a $26.58 million capital outlay.
Fast forward to this week – The whale offloaded 395k HYPE at $36.69, generating $14.51 million in returns. However, that’s just the start. Notably, 1.05 million HYPE is still on deck, valued at $40.5 million.
Unlike previous short attempts, this wave of short positioning aligns with real whale distribution. In turn, making it feel less speculative and more tactical. If that trend holds, the bears might actually be playing it smart this time.
Why FOMO is HYPE’s greatest catalyst
In a bull market, every liquidity event becomes someone else’s entry point. Right now, it looks like HYPE bulls may be playing by that rulebook with conviction.
Right after one whale’s multi-million dollar exit triggered jitters of a possible top, the tables flipped fast.
In fact, Lookonchain data flagged three new deep-pocketed players jumping in, scooping up 137,921 HYPE tokens worth a combined $5.33 million. Their average buy-in? A confident $38.50.
Sure, short-term volatility might kick in as smart money locks in gains. However, the FOMO is still very much alive – and that’s HYPE’s biggest edge.
The shorts might think the coast is clear, but with heavy accumulation stacking near resistance, any short squeeze could ignite a powerful breakout. In other words, a new all-time high might be within reach.
