Hyperliquid's 27% Plunge Has Whales Ditching 58% of Bags, But Smart Money Is Still Knitting 🧶

Hyperliquid [HYPE] is trading at $55.7 after falling 27% from its $75 peak, which itself marked a more than 3x rally from the February low of $20. The pullback coincides with an extended decline in Bitcoin, indicating a broader risk-off move across digital assets rather than a Hyperliquid-specific catalyst.

The token's retracement has retested the 50%-61.8% Fibonacci zone, a range often associated with potential rebounds, between $48 and $55 measured from the February lows and June highs. A sustained break below $48 would invalidate the bullish setup and could expose the $40 and $36 (200-day moving average) levels to short sellers.

On-chain data from Nansen shows whale exposure to HYPE has dropped 58%, while exchange selling pressure climbed 200% over the past week. Profit-taking has mirrored a cooldown in spot ETF inflows, which logged their first daily net outflow of roughly $3M last Friday and zero flow on Tuesday, according to Soso Value.

Smart money activity, however, rose 8% during the same period, suggesting some sophisticated players are using the lower prices to add exposure. Upcoming catalysts include the Coinbase deal, which is set to accelerate HYPE buybacks funded by USDC treasury yield.