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Retail Thinks HYPE Is Breaking Down, But Whales Might Be Setting A Trap

2 mins
Updated by Harsh Notariya
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In Brief

  • HYPE remains inside a rising wedge as whales accumulate during red candle dips
  • Negative funding rates fail to push prices lower, whilethe long/short ratio stays bullish
  • Smart Money flow via CMF remains positive, signaling capital is still entering
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The HYPE token has been trading inside a rising wedge since late June 2025, a formation often seen before breakdowns. But this time, something’s off.

Despite the weak price action and rising retail shorts, smart money signals are quietly flipping bullish under the hood.

HYPE Whales Keep Buying Every Dip

Beginning in mid-June, several large wallets, including 0xDc50 and 0x89AB, deposited millions of USDC onto Hyperliquid. These inflows coincided with price dips, both of which bounced sharply after HYPE tokens were purchased. Lookonchain reports confirm that 0xDc50 alone bought over 500,000 HYPE around $33–$34, spending over $17 million in under two days.

In each case, red candles marked by local lows (one local high when a whale took profit) on the TradingView chart aligned with whale accumulation zones. It’s not a coincidence.

These reversals are the footprints of deep pockets repositioning before retail shorts can react.

HYPE price chart: TradingView

Funding Flips Negative, But It’s Not Working

Since July 1, funding rates for HYPE across major perps have flipped negative. This means short-sellers are paying to hold their positions.

In theory, this should push the HYPE price lower, but the opposite happened. 

HYPE funding rates
Funding rates: Coinglass

One address, 0x4F12, exited at $42 after staking and selling 126,772 tokens, making $2.8 million. But even as exits happen, inflows from new wallets like 0xE2f8 and 0xCaC1 are replacing them.

Despite the negative funding rates, Hyperliquid’s long/short ratio shows that longs still outnumber shorts 64:36, but the ratio has dropped from over 2.1 to below 2.0 in 48 hours. This indicates some long exit, but not enough to tilt the bias yet.

HYPE long/short ratio
Long-short ratio: Coinglass

Smart Money Flow Still Net Positive

The Chaikin Money Flow (CMF), a TradingView indicator that tracks volume-weighted inflows versus outflows, has remained above the zero line for some time now. That signals buying strength. CMF doesn’t just follow price; it tracks capital flow. A positive CMF during sideways consolidation indicates that Smart Money is still accumulating while the price remains stable.

CMF in the positive zone: TradingView

The current structure would be invalidated only if CMF breaks down below zero alongside the price breaking below $37.5. Until then, dips are being bought hard.

CMF helps highlight where real money is flowing. Unlike RSI or MACD, which measure momentum, CMF indicates whether traders are moving capital into or out of the token. And right now, it still looks positive.

HYPE’s Rising Wedge Still Intact

HYPE continues to trade within a rising wedge in the hourly timeframe, with higher lows since June 27 and resistance forming near $41. If the price breaks above the wedge and holds above $42 with volume, shorts could face a violent squeeze.

HYPE Price Performance: TradingView

However, if the price falls below $38.50, $37.50, the more recent support lines, a move towards $31.50 can become possible. Yet, $36.86 remains a key support line as it aligns with the smart buying level. Hitting those key support zones would flip the structure, and whales may start rotating out. For now, the wedge remains intact, and whales are still buying, not selling.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Ananda Banerjee
Ananda Banerjee is a technical copy/content writer specializing in web3, crypto, Blockchain, AI, and SaaS — in a career spanning over 12 years. After completing his M.Tech in Telecommunication engineering from RCCIIT, India, Ananda was quick to pair his technical acumen with content creation in a career that saw him contributing to Towardsdatascience, Hackernoon, Dzone, Elephant Journal, Business2Community, and more. At BIC, Ananda currently contributes long-form content discussing trading...
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