Hyperliquid Price Rejection Could Set Up a Bullish Breakout as Whales Short

Three Things to Know

• Hyperliquid's two top traders have built more than $1 billion in short bets against crypto, including HYPE itself.
• HYPE's chart still leans bullish, with the token holding above its key moving averages as momentum turns up.
• A nearby ceiling just above the current price will decide whether the whales get paid or squeezed.

The leaderboard's top two traders on Hyperliquid are betting heavily on a crypto decline. On-chain data shows both accounts short HYPE, and the leader keeps adding to a position already deep in the red.

That sets up a direct test for the exchange's own token. Buyers still control the trend, and crowded shorts can turn into fuel if prices rise. Traders now want to know which side breaks first at resistance.

Hyperliquid's Top Two Traders Stack $1.06 Billion in Shorts

The two leading accounts on Hyperliquid's monthly leaderboard hold about $1.06 billion in combined short positions. The bets span dozens of assets and point to a broad crypto decline, according to Hypurrscan block explorer data as of 4:40 a.m. UTC on Nov 2.

Over 30 days, the leader has made roughly $99.1 million in profit. Its cumulative gains stand near $207.7 million. It carries $617.5 million in shorts across 22 assets. With equity of about $131.2 million, that works out to roughly 4.7x leverage.

Ether is its largest bet, a short of about 97,460 ETH worth $224.5 million. The account opened it near $2,322.72 and faces liquidation only around $3,701. It also shorts about $182.1 million in bitcoin, plus SOL, ZEC, XRP, gold and silver.

Both accounts are short HYPE itself. The leader's position of about 48,837 HYPE, worth $43.1 million, shows an unrealized loss of $8.34 million. The trader still added about $700,000 to it in a half-hour window that morning.

The second account holds $439.4 million in shorts across 30 assets on equity near $105.1 million. Its HYPE short is even larger at $54.7 million.

HYPE Holds Above Both Averages While Whales Bet Against It

HYPE traded near $85.81 on Monday, down about 2% over the past day. The token still sits above its 50-day moving average near $82.78. That line tracks the average closing price over roughly ten weeks, and it now acts as a floor under the price.

The 200-day average sits much lower, around $68.95. A price that far above the long-term line means the broader uptrend remains intact. Buyers still own the structure, even with two large traders positioned against them.

Most of the repair came last week, when HYPE gained about 12%. That rally has cut the monthly loss to roughly 4%, so most of the October slide is already gone.

Today's dip looks like a pause. The price gave back a small slice of the weekly move and stayed above the 50-day line. A real reversal would need a close below that average, and the chart shows no sign of one yet.

The whale positions add a twist. The leader's HYPE short is already deep underwater, which means the token has climbed since the trader opened it. The trend has been running against the bet for some time.

The trader shows conviction by adding to a losing short, and that raises the stakes. If HYPE keeps rising, those traders may have to buy back tokens to cut losses. That forced buying could push the price higher still, which keeps a short squeeze on the table.

Buyers Keep Control Without Overheating

RSI, a 0 to 100 gauge of momentum, sits near 55 on the daily chart. That reading lands in neutral territory. Buyers have the edge, but the token is far from the overheated zone above 70, so it has room to climb before it looks stretched.

A short works best against a market that has already run too hot. HYPE shows no such strain after its weekly rally.

Momentum also leans higher. The MACD, a tool that compares short and longer price averages, has crossed above its signal line. In plain terms, upward pressure is building again after the October slide.

Trend strength backs that up, with buyers driving a real trend. Until that changes, the shorts are betting against the market's direction.

The Ceiling Shorts Need to Defend

Resistance sits near $88, just a few dollars above the current price. That level capped the weekly rally, and it marks the line the short sellers most need to hold. A daily close above it would push their HYPE positions deeper into the red.

A clean break could open the way toward the next ceiling near $95. Shorts covering into that move would add buying pressure. That is how a squeeze feeds on itself.

If sellers hold that ceiling, the token could fall back to test support near $83. That floor lines up almost exactly with the 50-day line, which makes it a strong zone. Buyers have defended it through the recent rally.

Losing that level would change the picture. The next support sits much lower, around $76. A drop there would hand the whales the payoff they are betting on.

Where a Squeeze or a Rejection Would Start

The next daily close at resistance should show which side gets paid.

• Bullish: A daily close above resistance would put shorts under pressure and target the next ceiling at $95.25. Forced covering could speed the move. The setup fails if HYPE slips back below the floor at the 50-day line.
• Bearish: A rejection at resistance, followed by a close under $82.61, would open a slide toward $76.15. That would reward the whales' patience. A reclaim of the ceiling would cancel this case.

The Trend Still Sides With Bulls

HYPE holds its key averages, and momentum is turning up. The crowded short side gives any break above resistance extra fuel.

The risk is who sits on the other side. These traders have deep equity and liquidation levels far from the market. They can absorb a rally and still wait for a turn.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.