TL;DR

• Whale exits HYPE with $13.6M profit, rotates into Ethereum after recent market strength.
• HYPE tests ascending channel support, holds $43 level amid rising volume and buyer interest.
• Stochastic RSI is in the oversold zone as traders watch for a possible price reversal this week.

Price Holds Above Key Trendline

Hyperliquid (HYPE) was trading at $44 as of press time. The price rose 2% in the last 24 hours and 4% over the past week. Trading volume over the last day reached $419 million.

Since April, HYPE has followed a steady upward path within a rising channel, which shows a pattern of higher highs and higher lows. 

Notably, the price recently pulled back to its lower trendline. It then bounced off this level, showing that buyers are still active in that zone. The asset staying within this channel keeps the current trend in place.

HYPE is near short-term support at $43, which matches the 9-day moving average. A drop below this may lead to the next level at $42. If weakness continues, lower supports at $36 and $32.5 could come into focus.

On the other hand, price resistance begins at $44.31. Above that, the 21-day moving average is around $45. If the market moves higher, further resistance sits at $46.28. The highest level in view is $50, where the price recently faced selling pressure.

Indicators Show Mixed Signals

The 9-day moving average is currently below the 21-day moving average. This can point to slowing momentum in the short term. However, the asset is now pushing above the 9-day line, which may suggest recovery.

The Stochastic RSI shows values of 19.83 and 17.51. Both are in the lower zone, which is often watched for signs of a possible price turn. No crossover has happened yet, but traders are watching closely.

Whale Moves and Exchange Update

A large wallet recently closed its HYPE position for a $13.6 million gain. The funds were used to buy 3,322 ETH, worth about $12.84 million. At the same time, James Wynn lost over $1 million in leveraged trades on the same platform. 

Hyperliquid processed $648 billion in trading volume during Q2. Over the past 12 months, the platform saw $1.57 trillion in total volume and now holds more than 60% of the perpetual DEX market. 

A recent API issue affected trades, and the exchange said it will refund users who qualify. The cause was linked to rising traffic, not a security breach.

With the price holding key support, the market now watches to see if the rally continues this week.