Whale traders on Hyperliquid have taken their biggest net-long bet on HYPE in eight months, while retail participants piled into short positions at a 12-month bearish extreme. The split, historically resolved in favor of larger players, sets the stage for a short-covering rally. HYPE was trading at $62.05 Tuesday, down 2% on the day but still well above its early February lows and key technical levels.
Whale bets and retail short squeeze potential
The positioning data, pulled from on-chain metrics, shows a stark divide. Whales — addresses holding large amounts of HYPE — have been accumulating since mid-May, when the broader rally kicked off after a month of consolidation in April. Retail traders, meanwhile, have been shorting into the rising trend, hitting their most bearish sentiment in a year. Historically, when whales go long and retail goes short, the market tends to resolve in favor of the bigger players, often triggering a squeeze as shorts scramble to cover.
The timing isn't great for bears. HYPE has climbed sharply from February lows, and the MACD indicator is trending upward in positive territory with growing green histogram bars. Bollinger Bands have widened significantly, a sign of elevated volatility that could amplify any squeeze.
Technical setup: cup pattern and $59.54 support
Analyst Bitcoin Meraklisi flagged that HYPE closed a daily candle above $59.54, a key resistance level. That move completed a cup pattern on the chart, with a measured target of $170. The $59.54 level is now considered critical support; holding above it keeps the bullish case intact. HYPE is trading above its 20-day simple moving average of $47.97 and above the upper Bollinger Band, both bullish signals.
Price has risen sharply from early February lows to the current range, and the widening bands suggest the trend could accelerate — in either direction. But with whales leaning long and retail leaning short, the path of least resistance appears higher.
ETF push and network access
Grayscale filed a third amendment with the SEC for a Hyperliquid ETF under the ticker $GHYP. The repeated filings suggest the asset manager is committed to getting a regulated product to market, though the timeline remains unclear. Separately, MoonPay launched access to USDH and USDC through the Hypercore network, giving users a new on-ramp for stablecoins on the platform.
For now, all eyes are on whether HYPE can hold above $59.54. If it does, the cup pattern target of $170 becomes the next major milestone. If it doesn't, the whale-versus-retail standoff could flip quickly. The next few sessions will tell.
