Foreign media reports indicate that Hyperliquid's token HYPE has experienced a significant pullback after a rapid initial rise, with a single-day drop of nearly 17%. The report links this decline to the latest on-chain transfer from Arthur Hayes-related wallets. The market is currently focused on the $58-$60 range, observing whether this correction is a temporary cooling or the beginning of a further weakening trend.
Arthur Hayes' wallet reappears with transfers.
The report, citing on-chain data, states that a wallet associated with BitMEX co-founder Arthur Hayes recently transferred another 85,714 HYPE tokens to Bybit, equivalent to approximately $5.73 million, according to the article. Previously, the same wallet had transferred out approximately 247,334 HYPE tokens, worth close to $18 million.
A single transfer to an exchange does not equate to a sale, but when a token has experienced a significant initial price increase, such actions are often interpreted by the market as a signal of reducing holdings. Therefore, some traders view HYPE's recent pullback as a release of pressure from whales taking profits.
$58 to $60 becomes the short-term focus
The article argues that HYPE is currently retesting the $58 to $60 range. This level previously served as a key breakout area for accelerated price increases and is therefore considered a crucial support level for the short-term trend.
If buying interest can sustain in this area, the current pullback is more likely to be seen as a normal cooling after the rally, and prices may retest the $68-$70 range. If this support level is breached, the market's assessment of the previous strong structure may weaken, and prices could continue to test the $50-$48 range.
- Current target range: $58 to $60
- Upper observation area: $68 to $70
- Potential pullback zone below: $50 to $48
Derivative positions amplify volatility
The report also mentioned that leverage distribution in the derivatives market is amplifying volatility. The liquidation heatmap shows a relatively dense concentration of positions around $68 to $70; if prices rebound, short covering could accelerate the price movement.
At the same time, there is also significant leverage below the current price. If the support around $58 is broken, volatility could amplify further. The article argues that HYPE's current decline is not driven by a single news item, but rather by a combination of large on-chain transfers, rapid prior price increases, and concentrated leveraged positions.
