As HYPE prices appreciate, whales have been feasting on the gains. A HYPE whale made almost $5 million profit, with the token gaining more than 55% value within just the past couple of days. Now that HYPE has broken two of the major obstacles in its path, the token could be testing the next psychological resistance level at $40.
A HYPE whale booked $4.92 million in profits by selling the entire position. At one point the whale had unrealized profits of around $15 million; however, the whale’s realized profit was only a third of this amount.
Meanwhile, another whale named “Einstein” on Debank withdrew $3M USDC from Lighter, deposited it into HyperLiquid, and bought 90,780 $HYPE at $33.05. With the current price of HYPE at $33.93, the whale roughly has around $81,000 in unrealized profits.
What is the hype around HYPE?
The Hyperliquid’s HIP-3, also known as “Builder Deployed Perpetuals,” has been a key driver of the prices. This feature allows a user to create a perpetuals market, given that the user stakes 500,000 HYPE. With many traders seeking a safer haven in precious metals, a good portion of them invested in the Gold futures perpetuals on HIP‑3, the protocol. With traders landing on this protocol, the demand for the HYPE token blew up, and the token, which was trading around $27, hit $33.
As shown in the chart above, the HYPE token has been trading inside the falling wedge since September. But with geopolitical tensions and the investors seeking safer havens, the token broke out of this falling wedge. Not only did the token break the wedge pattern, but it also managed to break above the strong resistance levels at the 50-day moving average ($26.8) and the 200-day MA at $34.2.
HYPE is overbought but it wont retrace
Although technical HYPE is overbought, the geopolitical conditions still prevail. What does that mean? When HYPE is overbought on the charts, the market usually corrects the prices with a retracement. However, the prevailing geopolitical tensions still persist, and traders will still look for safer havens like gold perps, which are available on HIP-3. Hence, although technically HYPE is overbought, it may still continue to appreciate.
