Key points
- Hyperliquid (HYPE) fell 4% on Friday to around $78, continuing its pullback.
- Hyperliquid Strategies has applied for Futures Commission Merchant (FCM) registration to support regulated perpetual futures trading for U.S. customers.
- According to Santiment, four large whale wallets collectively realized approximately $5 million in profits after closing their HYPE positions.
Hyperliquid (HYPE) fell 4% on Friday to around $78. Despite recent developments suggesting the protocol may expand into the U.S. derivatives market, profit-taking by large investors continued to pressure the token.
This decline occurred after a previous upward rally. HYPE once approached $97 before selling pressure returned.
Blockchain analytics firm Santiment reported that four large wallets collectively realized approximately $5 million in profits after closing their HYPE positions, intensifying market concerns about the sustainability of the recent price rebound.
Hyperliquid Strategies seeks CFTC approval for its U.S. perpetual futures business
Hyperliquid Strategies announced its FCM application in its Q3 earnings report released on Thursday.
The company plans to establish a regulated intermediary to hold U.S. customer accounts for licensed derivatives markets deployed on Hyperliquid’s infrastructure.
This proposed arrangement will operate under the regulatory framework of the U.S. Commodity Futures Trading Commission (CFTC) and is subject to obtaining necessary approvals.
According to the planned structure, independent operators can launch and manage licensed markets through Hyperliquid’s HIP-3 framework.
These operators will be responsible for meeting applicable regulatory requirements, while the underlying blockchain will continue to operate as a neutral infrastructure layer.
If approved, FCM registration could enable Hyperliquid Strategies to offer perpetual futures products to U.S. customers.
Despite positive regulatory developments, Hyperliquid's native token has struggled to hold onto its recent gains.
Santiment reported on Thursday that four large whale wallets closed their HYPE long positions, collectively realizing approximately $5 million in profit.
These trades occurred after HYPE surged sharply, with its price briefly approaching $97. Santiment, citing Score Arena, noted that one wallet began accumulating HYPE at the end of May and later sold its entire holding of approximately 310,000 tokens.
The address is said to have sold approximately $225,000 worth of HYPE every five minutes while HYPE trades between $94 and $95.
According to the disclosed data, this strategy generated approximately $2.4 million in realized profits.
Two other large wallets also exited their positions after the price increase. One reportedly earned approximately $987,000 by trading 98,000 HYPE tokens, while the other achieved nearly $1 million in profit with around 140,000 tokens.
Hyperliquid Technical Analysis: HYPE Under Pressure Below Key Moving Averages
Hyperliquid's daily chart shows that short-term pressure has strengthened again after being rejected at recent highs.
HYPE is currently trading at approximately $77, below both the short-term and medium-term exponential moving averages (EMAs), indicating that sellers still dominate the short-term trend.
This cryptocurrency also failed to sustain a breakout above a downward resistance trendline, further reinforcing market concerns about the strength of the previous rally.
The momentum indicator also supports a bearish view. The daily Relative Strength Index (RSI) is near 42, below the neutral threshold of 50.
Meanwhile, the stochastic oscillator has dropped to around 23, nearing the oversold region.
HYPE's immediate support level is at $75.69, just below Friday's reported trading price.
If the price continues to break below this level, it could increase selling pressure and expose the next support at $67.63. If bearish momentum strengthens further, the token may decline further to $61.16.
On the upside, $78.10 near the 100-day EMA serves as immediate resistance. Regaining this level could be an early sign of weakening selling pressure.
However, buyers will then face a stronger resistance zone formed by the 20-day and 50-day EMA between $82.33 and $82.51.
If these resistance levels continue to be broken, the next horizontal resistance at $85.04 could open further upside potential.
If bullish momentum strengthens significantly, the recent resistance near $97.84 could become a potential upside target.