Hyperliquid’s attempt to rebound failed after it was rejected at $68. HYPE subsequently broke through the $60 support level and fell to as low at $58.
HYPE, at the time of publication, was traded for $59 and had fallen 11.2% within 24 hours. Also, it was down 12% for the week.
During the selling off, volume of trading increased 36% and reached $561 Million.
Why was a wallet linked to a16z able to move $30 million dollars?
HYPE’s rebound was not successful and it faced increased pressure from the market.
Arkham claims that an account linked to the a16z platform deposited 471,500 Hype, valued at $30.57 Million, on several exchanges. OKX, Bybit and Gate were the receiving exchanges.
This wallet is still one of the largest holders, with more than nine million tokens.
The deposits represent only a part of the total position. Although they don’t confirm a sale, exchange deposits may indicate a selling intention.
Are dip buyers supporting HYPE?
HYPE declined despite the wallet deposit, attracting buyers from the Spot Market.
CoinGlass data revealed that Spot Netflow had been negative for 3 consecutive days throughout the market pullback. Spot Netflow was -$6.18million at the time of press, down from -$6.09million on day before.
The Negative Netflow of Spots indicates that more traders have removed HYPE than they have deposited.
SoSoValue showed, on the other hand, that net inflows for HYPE ETF reached $2.13 Million on the 15th July. On the 16th, net inflows were zero. This means that neither buying or selling was taking place. It was possible that investors had paused following the inflows of the day before.
Can HYPE recover more than $60?
HYPE received some support from spot demand and easing ETF sales. Short-term downward pressure was still strong. Relative Strength Index [RSI] HYPE fell below neutrality to 37.
The Directional Movement Index is also a useful tool. [DMI] Positive indicator decreased to 17. The Average Directional Index increased to 26.
All of these indicators indicate that the momentum is still bearish.
Continued sale could push HYPE toward $52. But a stronger Spot market could allow the altcoin to reclaim its $60. If the altcoin recovers above $60, then attention will shift to $68.
Final Summary
- The wallet of a16z has deposited 471,500 HYPE (worth $30.57m) across various exchanges.
- HYPE broke through $60 but Exchange Outflows showed that buyers of Spots were accumulating as the market declined.
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Source: ambcrypto.com
