$6 Million Wager on Hyperliquid – Can HYPE Defy Gravity and Hit $40?

A whale just dropped $6 million on Hyperliquid—either a genius play or a spectacularly timed mistake. The market's holding its breath.

HYPE's at a crossroads: rocket to $40 or faceplant back to reality. No middle ground here—crypto never did believe in moderation.

Meanwhile, trad finance bros are still trying to short Bitcoin with their 'risk management' strategies. Good luck with that.

Is HYPE preparing to explode above $40?

HYPE has maintained a strong uptrend since April, following an ascending trendline while holding $32 as a firm support. 

After retesting this support level recently, bulls have stepped back in, pushing the price close to the $38 resistance zone. 

Source: CoinGlass

With price perched just below this level, a MOVE above $38 could set the stage for a clean break above $40. Volume spikes on green days and the intact trendline only strengthen this bullish setup.

Source: TradingView

Traders take a cautious stance

Despite bullish price action, derivatives data shows a slight cooldown. Volume has declined by 4.75% to $1.25 billion, while Open Interest dropped 2.46% to $1.46 billion. 

This suggests that traders may be reducing leverage exposure in favor of waiting for confirmation of the next major move. 

However, this decline does not imply bearish pressure. Instead, it reflects a temporary pause as markets digest recent gains. 

If volume returns with a price breakout, Leveraged traders might re-enter aggressively, potentially accelerating upside volatility.

Key liquidation clusters around $38 and $40

According to the 24-hour liquidation heatmap, significant liquidity builds up around the $38 and $40 price zones. 

These clusters often act as magnet levels during volatile conditions, meaning any breakout into this region could trigger forced liquidations. 

This may cause rapid price movements, especially if shorts get squeezed above $38. On the flip side, downside pressure remains weak, with less liquidation density below $34. 

As long as HYPE stays above the $32 support, upward momentum remains the path of least resistance.

Source: CoinGlass

The OI-Weighted Funding Rate sat at 0.0094%, indicating a neutral-to-slightly-bullish sentiment among derivatives traders. 

Funding has remained relatively flat throughout the past week, showing that traders were not heavily biased in either direction. 

This balance helps prevent sudden squeezes and reflects a healthy trading environment.

With stable funding, the price remains more influenced by spot accumulation, such as the whale purchases, rather than excessive leverage-driven moves.

Can whale activity drive HYPE toward a breakout?

The confluence of whale accumulation, sustained trendline support, and neutral funding dynamics paints a bullish picture for HYPE. 

Despite short-term cooling in derivatives activity, the broader sentiment remains constructive.

Liquidation Heatmap clusters above $38 and $40 could serve as catalysts for explosive upside moves if triggered. 

Therefore, a decisive push above $38 may initiate a breakout rally toward $40. As long as HYPE holds above the $32 support, bulls retain control, and the recent whale confidence may prove to be a leading indicator of strength.