A major HYPE token cluster, funded via the privacy protocol Tornado Cash, has reactivated after a prolonged dormancy, unstaking 262,400 HYPE tokens (approximately $6.9 million) and immediately initiating sales. This activity is part of a larger pattern where a previously dormant wallet cluster, inactive for over 12 months, recently unstaked 631,889 HYPE (~$20.3 million) across three wallets.
The cluster, which represents roughly 14–15% of the holder's total stack, originally acquired its HYPE position using funds rotated from 10,200 ETH. According to crypto analyst MLM, the cluster sold that ETH for $37.56 million before converting it into HYPE at an average price of $8.8. "After more than three years of dormancy, the cluster became active one day after the HYPE TGE and bought all its HYPE within 48 hours," MLM reported. The cluster now holds over $120 million in unrealized gains, raising questions about the nature of the funds.
Crypto watcher Ray Tio confirmed the whale has begun selling, noting, "He has now sold 60k HYPE ($1.6M), and will likely continue selling." The whale currently has 1 million HYPE (~$26 million) in total ready to be unstaked, signaling potential for larger sell-offs. Analysts are closely monitoring these movements due to the potential for high market volatility.
Concurrently, the Hyperliquid network is experiencing a significant capital influx. Over the past 24 hours, Hyperliquid dominated bridge activity, attracting a net inflow of $55 million and generating over $1.1 million in fee revenue. This surge highlights strong user demand, likely driven by trading momentum and liquidity incentives.
This capital movement represents a shift within the crypto market rather than an exit. Established networks like Arbitrum and Ethereum saw notable outflows of over $25 million each, while capital flowed into emerging platforms like Hyperliquid, BNB Chain, and Base. This indicates investors are diversifying their holdings across different ecosystems.
Amid these macro flows, HYPE's price action is under scrutiny. Analyst ChiefraT highlighted the key $29.90 price level for determining bullish or bearish trends. Trader Tim emphasized maintaining structure around $26, suggesting a move to $29 or $30 remains possible if support holds. Analyst Ken identified $25.8 as a critical support line for potential upward movement.
Adding another layer, the whale behind the HYPE sales re-entered the accumulation phase after five months of inactivity, using $2.5 million USDC to purchase 69,975 HYPE and leaving $765,000 to continue buying via HyperBot. Experts warn that such large whale transactions are early indicators of significant price volatility, making them a focal point for traders shaping short-term strategies.
