Hyperliquid [HYPE] faces a renewed supply concern as Galaxy Digital transferred around 95,270 HYPE, valued at nearly $8.11 million, to Bybit and OKX within four hours, as reported by Onchain Lens.
The firm deposited 36,420 HYPE worth $3.10 million to Bybit and another 58,850 HYPE, valued around $5.01 million, to OKX.
Separately, a whale continued taking profits through a number of repeated exchange deposits. According to Lookonchain, the whale deposited 232,610 HYPE, worth $19.67 million, into Bybit and Gate within two weeks.
Both transactions combined placed nearly $27.78 million in HYPE onto exchanges, triggering a supply pressure.
Spot outflows counter concentrated selling
At press time, Hyperliquid had recorded a negative spot netflow of near $3 million despite the deposits from the large holder.
The negative figure does not represent the total withdrawal volume but rather indicates the aggregate outflows exceeded the inflows.Therefore, the broader withdrawals partly countered the exchange-side supply pressure created by Galaxy Digital and the whale deposits.
Continued negative netflows could reduce the readily available supply on exchanges so long as demand remains stable, strengthening the accumulation narrative behind HYPE.
However, persistent selling from the larger-holders could challenge buyers, especially if these deposits eventually translate into sustained market sales.
Funding rebound restores bullish positioning
The derivatives’ positioning, on the other hand, added another layer of support as market participants rebuilt bullish exposure after a short-term bearish shift.
HYPE’s OI-Weighted Funding Rate recovered after dropping sharply into the negative territory on the 8th of September. Subsequently, the rate then returned to the positive territory, reaching approximately 0.006% on September 9.
Generally, a positive funding rate indicates that the long-position holders paid shorts, implying fresh long-side positioning across the derivatives markets. However, for this case, the abrupt reversal also reflected rapidly changing market participants’ positioning.
The growing long exposure could support HYPE in case buyers continue absorbing the large-holder supply. Alternatively, strong leverage could likely increase the risks associated with downside liquidation in case the concentrated selling overwhelms demand.
RSI divergence challenges HYPE’s rising structure
On the daily timeframe chart, HYPE preserved its ascending channel structure after the broader recovery carried the price above the $76.54 resistance zone.
At the time of analysis, HYPE traded around the $86.48 area, keeping the $88.14 price level as the immediate barrier hindering further upside advance.
However, the RSI indicator introduced developing weakness beneath the bullish price structure set up. The indicator declined towards the 63.75 level after previously pushing above the 80 overbought territoy.
More noteworthy, the RSI kept forming descending highs while HYPE continued forming higher highs within its rising channel structure. The bearish divergence implies that the buying strength weakened irrespective of the sustained price uptrend.
Meanwhile, the Parabolic SAR remained below the prevailing price at $80.70, protecting the broader bullish structure despite the weakening RSI.
A successful breakout above the $88.14 resistance zone could therefore invalidate the divergence and open a move towards the $100 price level.
However, persistent RSI bearish divergence could likely trigger a breakdown of the channel structure, bringing the $80.70 and $76.54 support levels back into focus.
Final Summary
- About $27.78 million in large-holder transfers tests HYPE as spot outflows counter added supply.
- HYPE remains inside its rising channel, although falling RSI warns of weakening buying strength.
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