Key Insights:
- Cumberland, one of the biggest Hyperliquid crypto institutional holders, just moved 170,000 HYPE to Coinbase and Bybit.
- The HYPE crypto that moved to exchanges represents about 4% of the total institutional AUM.
- HYPE price action signals declining bullish momentum with bearish divergence.
It’s been quite an interesting week for the Hyperliquid crypto. After achieving a new all-time high on Thursday, its momentum cooled. However, the sell pressure remained at bay.
Perhaps Hyperliquid crypto holders have been anticipating more upside. That’s especially after news reports indicating that Hyperliquid was eyeing a presence in the US. However, HYPE may be building up sell pressure, and it could be coming from the institutional front.
Cumberland, one of the biggest HYPE crypto institutional holders, appears to be preparing to sell. According to Onchain Lens, Cumberland has reportedly transferred about 170,000 Hyperliquid crypto to Coinbase and Bybit.
Onchain Lens shows movement suggesting Cumberland aims to sell. Some of the HYPE coins were reportedly unstaked just a few hours prior. Most investors usually stake their coins for the long term and unstake only to sell.
Could Cumberland Trigger a Wave of Hyperliquid Crypto Profit-Taking?
Cumberland happens to be one of the biggest HYPE crypto institutional holders. Institutions have been at the forefront of the latest HYPE price rally.
The timing of the recently moved funds could send a wave of FUD among holders. According to Farside data, spot Hyperliquid ETFs had their biggest weekly inflows yet this past week.
The ETFs reportedly acquired $56.8 million worth of Hyperliquid crypto this past week. These inflows were critical in giving the HYPE bulls the momentum necessary to propel them into new historic highs.
Hyperliquid ETFs hold about $350 million in assets under management. Interestingly, the amount that Cumberland reportedly moved recently represents about 4% of the total HYPE held by institutions.
Such a large amount might be enough to trigger the next wave of sell pressure. That’s especially true considering that an institutional holder is at the forefront of the outflows.
Cumberland may thus be the trigger that shifts the Hyperliquid crypto from bullish to bearish. The chances of this happening were elevated, especially given that the cryptocurrency has been overbought all week.
HYPE Price Signals Declining Momentum and Potential Slide Below $80
Hyperliquid crypto has no doubt had its most bullish months since launch. In fact, it has achieved its second-highest monthly gains this month.
While it could keep pushing into price discovery, HYPE price was already showing signs of declining momentum. The cryptocurrency peaked at $86.8 on Thursday and has since retreated slightly to $83 at press time.
HYPE crypto’s RSI hovered at 69 at press time. This was the first time it retreated below overbought territory in the last 7 days. While this indicates declining bullish momentum, it also underscores the formation of a bearish divergence.
This could be a strong indicator that a deeper pullback is on the cards for Hyperliquid crypto. Open interest also remained elevated near its recent historic top.
Elevated open interest suggests that liquidations may be in plenty on the next major directional move. HYPE crypto also concluded the week with a large spike in negative funding rates on Saturday. This was the second-highest spike in funding rates in the last 3 months.
In summary, Hyperliquid crypto may be due for a short-term retracement. One that could potentially push it below $80.
However, its native platform has positioned itself as one of the biggest players in the crypto market. This underscores the potential for more price discovery in the coming months.
Be the first to comment