Key Insights:
- A massive leveraged short on HYPE is underwater, with the whale facing total liquidation if the price hits $25.912.
- Technical indicators show strong bullish momentum, with HYPE trading well above the 50-day SMA.
- With $1 billion in fresh USDT minted on Tron, added liquidity could pump up DeFi trading activity, including Hyperliquid.
Hyperliquid price is up a modest 1.3% in the last 24 hours, and the token is trading at $21.70. However, with whales making big moves, market sentiment shifting, and technical indicators flashing warning signs, HYPE is at a critical juncture. One whale, in particular, is staring down a potential $35 million loss on a massive short position, and the stakes couldn’t be higher. Will HYPE price action favor the whale in May?
Whale Risks $35M Loss
On May 8, Onchain Lens revealed a whale who deposited $3.2M in USDC into Hyperliquid, pushing their total deposit to $13.56M to fuel a 5x leveraged short position on HYPE, now valued at over $35M.
The whale who is shorting HYPE wants the price to drop so they can make a profit. According to Onchain Lens, the whale will be completely liquidated if HYPE price reaches $25.912.
Elsewhere in the crypto world, Tether minted another $1B USDT on the TRON network, bringing their 2025 total to $14B, according to Arkham Intelligence. That’s a lot of fresh liquidity floating around, which could juice up trading volumes across DeFi platforms like Hyperliquid and push the price of the HYPE token higher.
Will The Whale Get Liquidated?
The HYPE/USD chart shows that the current trend is upward. The price has formed a strong uptrend since mid-April, breaking out from the $17.00 resistance zone with higher highs and higher lows.
Recent candles show strong bullish momentum with long-bodied candles and minimal wicks on top, signaling buying pressure and a strong bullish continuation ahead.
The relative strength index (RSI) is at 68.72 – Close to overbought, but not extreme. Suggests momentum is bullish but nearing a cooling-off level. The moving average convergence divergence (MACD) indicator is also showing a bullish crossover with increasing histogram bars, confirming the current upward trend.
Price is well above the 50-day simple moving average (SMA), confirming bullish sentiment. Up ahead, HYPE price faces a clear path to the $27.50–$28 region highlighted in the blue zone on the chart. If price breaks above this level, HYPE may surge higher to $35.37, which marks the recent high.
On the flip side, if bears push the price down, Hyperliquid price will find support around $17, which marks the previous resistance-turned-support.
The chart likely completed a corrective wave in April and has entered a fresh impulsive wave aiming toward the $27.5–$28.0 zone.
Hyperliquid Price Building Momentum for Parabolic Move
On the sentiment front, Token Metrics has predicted that after breaking the $20 psychological level, HYPE’s momentum is building for a potential parabolic move. As long as the price was below $15, HYPE remained bearish, per Token Metrics AI.
All this reveals the whale’s Short position, which has been bleeding, is up for rough times ahead. The entry price for this short was $20.2485, but HYPE is now trading at $21.459, leaving the whale with a $1,930,833.28 unrealized loss.
The liquidation price for the whale’s position is $25.912—if HYPE pumps to that level, this whale’s $35M short is toast. With HYPE already up 2.71% in the last 24 hours, the bulls might just make this whale sweat.
HYPE’s at a pivotal moment. The $22 weak resistance is the line in the sand—break it, and we could see a run toward $25, putting this whale’s short in serious jeopardy. But if the bears take control and HYPE falls below $20, the next stop might be $14.50. For now, the market’s leaning bullish.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
