- Whale sell orders continue to suppress HYPE near the $27 resistance.
- Hyperliquid leads in fees and net inflows, signaling strong ecosystem demand.
- Bullish RSI and MACD suggest a breakout is possible if selling pressure eases.
The HYPE token entered January locked in a tight price range, frustrating traders despite rising activity across the Hyperliquid ecosystem. As of January 5, HYPE continued to trade between $23 and $27, repeatedly failing to push above a stubborn resistance level. The stalemate has sparked a central question for the market: is HYPE preparing for a breakout, or are whales deliberately keeping prices capped?
Hyperliquid Dominates Fees and Net Inflows
While price action has been muted, on-chain fundamentals tell a different story. Hyperliquid remains one of the most active decentralized platforms, leading the market in protocol fees and net inflows. Data shows sustained cross-chain liquidity entering the ecosystem, highlighting strong user demand and continued relevance within decentralized finance.
These inflows suggest that traders are actively deploying capital into Hyperliquid, even as HYPE’s spot price struggles. In most market cycles, rising usage and inflows tend to support higher valuations over time. For now, however, price has yet to reflect this strength.
Whale Sell Orders Cap HYPE’s Price
The main obstacle standing in the way of a breakout appears to be whale behavior. Large holders have consistently placed sell orders near the $27 level, absorbing buying pressure before momentum can build. Each attempt to push higher has been met with renewed selling, keeping HYPE locked inside its current range.
This pattern suggests whales may be taking profits or repositioning ahead of a larger move. Regardless of motive, their dominance in the spot market has made it difficult for retail buyers to gain control.
Technical Indicators Hint at Upside Potential
Despite the price ceiling, technical signals have begun to lean bullish. The Relative Strength Index (RSI) recently climbed toward the upper neutral zone, indicating strengthening momentum without reaching overheated conditions. At the same time, the MACD has printed a bullish crossover, often viewed as an early signal of trend continuation.
These indicators suggest that buying pressure is building beneath the surface. If demand continues to rise, it could eventually overwhelm sell-side resistance.
A decisive move above $27 would likely require sustained spot buying and a reduction in whale sell pressure. If that happens, HYPE could exit its range and resume a broader uptrend. Until then, traders should expect continued volatility and range-bound price action.
Also Read: WIF Jumps 13%, but Sellers Lurk — Is the Breakout a Trap?
For now, HYPE remains a token caught between strong fundamentals and powerful sellers — a setup that could resolve sharply once balance shifts.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. CoinBrief.io is not responsible for any financial losses.
