Over the past week, Hyperliquid [HYPE] has recorded strong performance on its price charts. After successfully defending the $33 support level, the altcoin surged three days ago to a new all-time high of $43.9.
With sustained gains over the past two months, Hyperliquid is becoming increasingly popular among whales, institutions, and retailers. As such, large entities now view HYPE as the next big thing among altcoins.
Amid growing demand, large entities are aggressively accumulating. Over the past day, two major purchases have been reported.
First, according to Newsfile, Tony G Co-Investment Holdings Ltd, a Canadian company, has completed a significant purchase of Hyperliquid.
The company reportedly purchased 10,387.685 HYPE tokens worth $438,828.46 at an average price of $42.24.
This purchase is a part of the company’s long-term digital asset strategy, marking a significant step in its move toward decentralized finance.
Not just Tony G, another large entity has also turned to a significant acquisition of the altcoin. According to Onchain Lens, a whale purchased 715,917 tokens worth $29.47 million at an average price of $41.16.
When institutions and whales turn to accumulation, it signals confidence in the asset. As such, many other players, especially retailers, could be incentivized by such moves to open positions, thus creating strong demand.
However, although whales and institutions are aggressively buying, retailers are not doing as much. Notably, Hyperliquid’s Spot Retail Activity Through Trading Frequency Surge declined over the last four days.
While Spot Trading Activity has been declining, the market has been recording neutral numbers of retailers. This implies that retailers are neutrally involved in the spot market.
While retailers are not aggressive in the spot market, they are extremely active in the Futures market, per Hyperliquid’s Futures Retail Activity.
This implies that retailers are actively gambling on HYPE, anticipating the altcoin’s next move. Retailers are bullish and are buying the altcoin to take long positions, as they expect prices to rally.
This buying spree from large entities has had a positive impact on Hyperliquid’s price movement. As of this writing, HYPE was trading at $42.32, marking a 6.01% increase over the past 24 hours.
These gains on daily charts extended a month-long uptrend, where HYPE surged by 70% in 30 days and 25% in seven days. Such significant gains across the charts indicate a strong upward momentum.
However, HYPE’s upward momentum was slowly weakening. The Stoch RSI made a bearish crossover over the past day, as the token entered the overbought zone.
A bearish crossover amid overbought conditions signals looming volatility that could see HYPE pull back. The Directional Movement Index [DMI] further validated this weakening momentum.
At press time, the +DI was 27 below -DI, which held around 40, suggesting that downward momentum built while upward momentum weakened. When the DMI is set like this, it suggests that prices could retrace.
In conclusion, if buying sprees from whales and institutions hold, they will maintain Hyperliquid’s uptrend and attempt a move to $44.
Conversely, if retail activity continues to decline while momentum is weakening, HYPE will retrace to $38.5 and find strength for another leg up.
