Key Insights
- Hyperliquid crypto ranked as the number one chain for fees collected in the past 24 hours, totaling $2 million.
- HYPE price action was attacking the $35 zone, and positive market sentiment could lead to a breach of this level. Will HYPE surpass this level?
- The Hyperliquid team wallet moved 2.6 million HYPE worth $90.18 million from staking to spot. The wallet still holds 240 million staked HYPE valued at $8.36 billion.
Hyperliquid (HYPE) was doing good partially when considering most of its on-chain activity and price action. Different fronts were performing well, while others were still wanting, especially whale activity and buy pressure from participants.
The altcoin dropped after visiting a key resistance zone at a time when most altcoins were declining. Only a handful of them recovered slightly in the past week, with Bitcoin (BTC) also reclaiming the $90K price level.
These contrasting outcomes from different metrics put the price action of HYPE at a crossroads. Will HYPE price manage to break the key resistance levels in play on the charts?
Hyperliquid Crypto Leads in Daily Fees Collected
The first metric to consider was the daily fees collected in the past 24 hours for top chains. Hyperliquid crypto led all other chains, generating exactly $2 million during this period.
This was a bullish signal in nature, as the altcoin was designed to reduce circulating supply through purchases from fees. The impact of such was not instant but was eventually significant to the price action.
However, Hyperliquid was outshining other top chains but was losing to Pumpfun (PUMP) in this regard. At the time of writing, PUMP was ahead with less than $100K in revenue from fees. The platform is used for launching Solana-based tokens and recently expanded to the TRON (TRX) blockchain.
With the altcoin leading in daily fees collected, will the price now break above $35?
HYPE Price Action Analysis: Will the $35 Resistance Be Breached?
On the charts, the HYPE price was attempting to breach the zone around $35 but was facing pressure from sellers every time. Initially, price rose above the zone and moved sideways above the horizontal level at $34.
The market structure showed that bulls were struggling to push the price up. The positions of these players had been liquidated after the Hyperliquid crypto price descended below $34.
From the look of things, HYPE was on the verge of a massive drop of more than 26%, which coincided with the $26 level. This zone ignited a short rally early, and such could be unfolding.
The bullish scenario was only intact if HYPE price successfully broke above $35 and stayed there for an extended period. However, the activity of the Hyperliquid team stipulated otherwise. In fact, it put the price of HYPE under intense selling pressure. Will this derail HYPE’s potential of breaching $35?
HYPE Price Faces Sell Pressure Induced by The Team
As per data from Hypurrscan, the Hyperliquid team wallet hinted that a massive sell-off was looming. This was due to the transfer of HYPE tokens from their staking wallet to the spot market, an activity often characterized by profit-taking, or in other words, selling.
The data showed that about 2.60 million HYPE, valued at more than $90 million, was moved to spot wallets after it was unstaked. Still, the team remained bullish as they were holding another 240 million staked HYPE worth slightly more than $8 billion. The movement of tokens induced sell pressure, which explained why the altcoin’s price failed to breach $35 several times.
Altogether, the price action of HYPE was primarily bearish from a technical outlook and the activity of the Hyperliquid team. The potential sell-off by the team probably caused fear among holders. This could be the reason why there was not enough capital to push HYPE past $35 and flip the market structure as the year’s end approached.
