Whale Activity Triggers 5% Drop in Hyperliquid's Price

Hyperliquid's (HYPE) price has dropped by 5% in recent times, and analysts are warning of potential further corrections. Despite this, some experts believe that HYPE remains a 'must-have' in any crypto portfolio. The asset has had a successful year, rallying by over 100%, and hitting an all-time high of almost $100 earlier this month.

However, recent whale activity suggests that the price may be gearing up for another correction. Large investors have started offloading their HYPE bags, with one wallet linked to Hypersphere Ventures dumping 62,869 HYPE (worth roughly $5.78 million) and making a $2.13 million profit.

According to analytics platform Lookonchain, some whales have deposited large amounts of HYPE into centralized exchanges, which is often seen as a bearish sign. One wallet transferred over $16 million worth of HYPE to OKX and Bybit, while another whale deposited nearly $50 million in the cryptocurrency to Kraken.

Despite this, exchange netflow suggests that investors may be gearing up for another leg up. Recent data shows that outflows have significantly outpaced inflows, reducing immediate selling pressure and potentially paving the way for future upside.