• Whale Accumulation: Large investors acquired 427,441 HYPE at an average of $27.09 over two months and 398,830 HYPE at $25.22 in five days, totaling over $21.5 million.

• Descending Wedge Pattern: HYPE price is compressing near the $22–$24 support zone, with RSI at 35.26 indicating oversold conditions and weakening bearish momentum.

• Exchange Outflows: Net outflows reached -$971K on December 23, 2025, following larger withdrawals of $30M–$50M, reducing available sell supply and increasing sensitivity to buying pressure.

Discover how whale accumulation in Hyperliquid’s HYPE token is countering price declines. Explore technical patterns, trader positioning, and funding rates signaling a potential reversal. Stay informed on crypto market shifts today.

What Is Driving Whale Accumulation in Hyperliquid’s HYPE Token?

Whale accumulation in Hyperliquid’s HYPE token has intensified during the asset’s recent price downturn, with major holders purchasing substantial volumes near support levels. This activity, totaling over $21.5 million in HYPE tokens, reflects confidence in the token’s underlying value despite broader market pressures. Data from on-chain analytics shows whales adding 427,441 HYPE at an average price of $27.09 over the past two months and another batch of 398,830 HYPE worth $10 million around $25.22 in just five days, indicating strategic buying rather than opportunistic trading.

How Are Exchange Netflows Influencing HYPE Token Supply?

Exchange netflows for HYPE have turned consistently negative, underscoring the accumulation trend beyond mere price movements. On December 23, 2025, outflows amounted to approximately -$971,000, continuing a pattern of significant withdrawals that previously exceeded $30 million to $50 million. These movements suggest that holders are moving tokens off exchanges into secure storage, thereby diminishing the immediate sell-side liquidity. According to data from CoinGlass, this sustained outflow during price weakness points to reduced selling intent among long-term investors. As a result, the available supply for trading tightens, making HYPE more responsive to incoming demand. This dynamic, observed in previous crypto cycles, often precedes upward volatility when combined with technical exhaustion signals. Experts note that such behaviors align with historical patterns where reduced exchange balances correlate with price stabilization or rebounds, as seen in analyses from TradingView.

Source: TradingView

Hyperliquid, as a decentralized perpetuals exchange, benefits from HYPE’s utility in governance and fee discounts, which may underpin this accumulation. Market observers from platforms like CoinGlass highlight that such whale activities often serve as leading indicators in volatile crypto environments, where large holders influence price discovery.

Is the Descending Wedge Pattern in HYPE Token Nearing Resolution?

The HYPE token price is currently trading within a descending wedge formation, hovering just above the lower boundary at approximately $22.26. This pattern, characterized by converging trendlines, typically signals diminishing bearish pressure and potential bullish reversals once broken to the upside. As of December 23, 2025, the Relative Strength Index (RSI) stands at 35.26, with its moving average at 34.12, confirming oversold territory without aggressive selling expansion. Recent price action reveals progressively shallower lows compared to prior drops from $48 and $35.92 peaks, indicating that sellers are gradually losing steam. Resistance levels are stacked, with initial hurdles at $29.94 and a major breakout target near $35.92. While a downside breach remains possible, the asymmetry in volatility favors upward resolution, supported by broader market sentiment in decentralized finance tokens.

Source: CoinGlass

How Are Top Traders Positioning for HYPE Token Amid Uncertainty?

Top traders on Binance are displaying a pronounced long bias for HYPE, with 61.65% of accounts in long positions versus 38.35% short as of December 23, 2025, yielding a long/short ratio of 1.61. This positioning holds firm even as prices linger near $24, implying anticipation of a bounce rather than further declines. Unlike earlier peaks where ratios spiked to extreme levels, current figures indicate measured optimism without overcrowding. CoinGlass data reveals that this stability among professionals, paired with whale buys, bolsters support at current levels. In the context of Hyperliquid’s ecosystem, which facilitates high-volume perpetual trading, such trader sentiment can amplify price movements when technical patterns resolve.

Source: CoinGlass

What Do Funding Rates Reveal About HYPE Token Leverage?

The open interest-weighted funding rate for HYPE has stabilized at 0.0047%, maintaining a mild positive tilt without recent surges. This follows periods of negative rates dipping below -0.02%, which triggered liquidations and contributed to the downside. The current neutral stance, per CoinGlass metrics, indicates that excessive leverage has been cleared, minimizing forced selling risks. In Hyperliquid’s derivatives market, balanced funding allows underlying spot dynamics to guide price more effectively. Historical precedents from similar setups show that funding resets often coincide with pattern breakouts, enhancing the prospects for HYPE’s wedge resolution.

Source: CoinGlass

Frequently Asked Questions

What factors are contributing to HYPE token whale accumulation in 2025?

Whale accumulation in HYPE is driven by its role in Hyperliquid’s ecosystem for governance and trading incentives, alongside perceived undervaluation near $22–$24. Over two months, holders added 427,441 tokens at $27.09 average, viewing the decline as a buying opportunity amid stabilizing market conditions.

How might the descending wedge impact HYPE token price in the coming weeks?

The descending wedge in HYPE suggests weakening downside momentum, with potential for an upside breakout above $29.94 targeting $35.92. Oversold RSI at 35.26 and shallower lows indicate exhaustion; a close above the upper trendline could confirm reversal, spoken naturally as building bullish pressure amid reduced selling.

Key Takeaways

• Strong Whale Activity: Accumulation exceeding $21.5 million absorbs downside risks, altering the support zone dynamics near $22.
• Technical Setup: The descending wedge and oversold RSI point to potential reversal, with resistance at $29.94 as the next hurdle.
• Market Positioning: Negative netflows and long-biased traders enhance sensitivity to positive catalysts; monitor for breakout confirmation.

Conclusion

In the evolving landscape of HYPE token accumulation and Hyperliquid’s growth, converging signals from whales, exchange outflows, trader longs, and funding stability position the asset at a pivotal juncture. While no immediate reversal is assured, the reduced supply and technical exhaustion tilt the balance toward upside potential. Investors should watch for wedge resolution as a key trigger, staying attuned to on-chain metrics for informed decisions in this dynamic crypto market.