Hyperliquid’s [HYPE] aggressive correction resumed after pausing on the 6th of July. The decline returned HYPE to one of its most closely watched support zones.
However, on-chain activity showed that long-term holders were increasing their exposure rather than exiting.
Recently, a single entity staked 1.49 million HYPE, worth roughly $88.2 million.
The entity distributed the stake across eight wallets, reducing its concentration within a single address.
Reports indicated that the wallets held their tokens for about nine months before staking them. That holding period suggested long-term positioning rather than short-term trading activity.
Why are holders staking more HYPE?
The large deposit was part of a broader increase in Hyperliquid’s staking activity.
According to AMBCrypto’s recent analysis, Hyperliquid’s Network data recorded a 40% increase in Net Staking Flows. This pushed the total amount of staked HYPE to around 436 million tokens.
The increase could influence HYPE’s price because staking reduces the supply immediately available for trading.
However, staking alone cannot guarantee price appreciation.
Sustained inflows may still indicate that holders prefer earning staking rewards over selling during market weakness. In HYPE’s case, the timing aligned with the token’s return to a Demand Zone that previously attracted buyers.
This left traders watching whether reduced liquid supply could help stabilize HYPE’s correction.
Can HYPE defend the $52 zone?
On the daily chart, HYPE’s broader Market Structure remained bullish despite its recent pullback. The decline returned HYPE to the $52–$58 Demand Zone.
This area previously produced several rebounds, making it an important level for buyers.
The zone also overlapped with the 200-day Exponential Moving Average [EMA] at $57.09.
Although HYPE traded below its 20-day and 50-day EMAs, the 200-day EMA remained a longer-term support reference.
If support holds alongside elevated staking, long-term holders may be absorbing available supply during the correction. By contrast, a decisive break below $52 could weaken the broader bullish structure and invite further selling.
The $64 resistance level remained the next major target if buyers regained control.
Therefore, HYPE’s next move could depend on whether staking conviction translates into demand around $52–$58.
Final Summary
- HYPE returned to major support while Net Staking Flows increased by 40%.
- Holding $52 could support recovery, while a breakdown may deepen the correction.