Hyperliquid’s native token HYPE has staged a strong rebound after one of its most volatile weeks of 2026, fueled by renewed whale accumulation and reports linking BitMEX co-founder Arthur Hayes to fresh purchases.
However, despite the recovery, several technical indicators continue flashing warning signs, leaving traders divided on whether the recent bounce marks the beginning of a new rally or merely a temporary pause before another leg lower.
With HYPE trading around $61.7, attention is now focused on a critical support level near $55 that could determine the token’s next major move.
HYPE Recovers After Sharp Correction
Hyperliquid experienced a dramatic selloff during the first week of June after several high-profile traders reduced their exposure to the token.
The correction pushed HYPE below $56, wiping out a significant portion of the gains generated during its powerful rally to an all-time high near $75.48.
Although buyers have since stepped in, the token remains approximately 18% below its record peak, highlighting the extent of the recent decline.
The selloff coincided with broader weakness across cryptocurrency markets as Bitcoin fell toward $61,500 and triggered widespread liquidations across leveraged positions.
Arthur Hayes Appears Linked to Fresh HYPE Purchases
Much of the recent market attention has centered on Arthur Hayes.
According to blockchain analytics platform Lookonchain, a wallet believed to be associated with the BitMEX founder withdrew approximately 33,978 HYPE worth around $2.09 million from Bybit following the correction.
The activity immediately sparked speculation that Hayes had returned to the market only days after selling his entire HYPE position.
Earlier, Hayes disclosed that he had liquidated approximately $18 million worth of HYPE, citing several concerns, including:
- Rising oil prices linked to Middle East tensions
- Liquidity demand from upcoming AI-related IPOs
- Expectations of broader financial market weakness
However, after reports surfaced regarding the latest withdrawal, Hayes publicly denied that he had re-entered the position.
The conflicting signals have left traders debating whether the wallet truly belongs to him and whether his broader bullish outlook remains unchanged.
Community Questions Hayes’ Trading Moves
The timing of Hayes’ sale attracted criticism from some members of the crypto community.
Only days before exiting his position, Hayes had publicly stated that:
- HYPE could reach $150 by year-end
- The token could outperform every other top-10 cryptocurrency
- He was willing to back his conviction with a $100,000 charity wager
The sudden sale created confusion among investors who viewed Hayes as one of Hyperliquid’s most prominent supporters.
Despite the controversy, Hayes later suggested that short-term risk management does not necessarily invalidate a long-term bullish outlook.
Whale Accumulation Returns
Arthur Hayes is not the only major player drawing attention.
On-chain data indicates that other large investors have been aggressively accumulating HYPE during the correction.
According to Lookonchain:
- A newly created wallet withdrew 82,089 HYPE worth roughly $5.16 million.
- The same address accumulated approximately 1.14 million HYPE over the past week.
- The total value of those holdings exceeds $79 million.
- The tokens were subsequently staked on Hyperliquid.
By staking the assets rather than leaving them on exchanges, the whale effectively reduced the immediately available circulating supply.
Many traders interpret this behavior as a sign of long-term conviction.
Why Whale Buying Matters
Whale accumulation often serves as an important sentiment indicator.
Large investors typically have:
- Greater market experience
- Access to sophisticated research
- Longer investment horizons
When whales accumulate during periods of weakness, it can signal confidence that prices have fallen below fair value.
However, whale buying alone does not guarantee a market bottom.
Large holders can be wrong, and broader market conditions still play a major role in determining future price direction.
Regulatory Concerns Added Pressure
The recent correction was not driven solely by market dynamics.
Regulatory developments also contributed to uncertainty.
The UK’s Financial Conduct Authority recently issued warnings related to Hyperliquid-associated activity, creating additional concerns for investors.
Although the warnings did not directly target the protocol itself, they arrived during a period when traders were already reducing risk exposure.
Combined with concerns surrounding future token unlocks, regulatory headlines added another layer of caution to the market.
Technical Indicators Remain Bearish
Despite the rebound, chart signals continue favoring caution.
Support Holds Near $55
HYPE has successfully defended support near the 0.618 Fibonacci retracement level around $54.7.
This area has emerged as the most important level on the chart.
If buyers continue defending the zone, the current recovery could extend further.
Resistance Sits Near $64
On the upside, HYPE is attempting to challenge resistance near the 0.786 Fibonacci retracement level around $64.
A decisive break above that region would improve the technical outlook considerably.
Until then, resistance remains firmly in place.
Bearish MACD Crossover Raises Concerns
The most significant warning comes from the MACD indicator.
The daily chart recently produced a bearish crossover, while the histogram remains below the zero line.
This setup typically signals:
- Weakening momentum
- Increased selling pressure
- Potential continuation of the broader correction
The bearish crossover follows HYPE’s rejection from the $75 area and suggests that buyers have not yet fully regained control.
Analysts Warn of a Head-and-Shoulders Pattern
Some market analysts see an even more concerning scenario developing.
According to crypto analyst Team LAMBO, HYPE may be forming a head-and-shoulders pattern, one of the most widely recognized bearish reversal formations.
The analyst identified $55 as the critical neckline level.
If support breaks, downside targets could extend toward:
- $45
- $40
Such a move would represent a significantly deeper correction from recent highs.
What Bulls Need to See
For the bullish case to regain momentum, several conditions need to be met:
Reclaim $64
A sustained move above $64 would weaken the immediate bearish setup.
Hold Above $55
Maintaining support above the Fibonacci level near $55 remains essential.
Improve Momentum Indicators
The MACD and broader momentum structure need to stabilize before a larger recovery can develop.
Without these improvements, the current rebound may remain vulnerable.
Hyperliquid’s Fundamentals Remain Strong
Despite the technical challenges, Hyperliquid continues to maintain some of the strongest fundamentals in the crypto sector.
The protocol benefits from:
- High trading volume
- Strong fee generation
- Growing user activity
- Significant staking participation
- Continued whale interest
These factors help explain why many investors continue accumulating despite short-term volatility.
Final Thoughts
Hyperliquid has recovered significantly from last week’s selloff, supported by renewed whale accumulation and speculation surrounding Arthur Hayes’ involvement.
However, the market remains at an important crossroads.
While large investors are buying, technical indicators continue pointing toward caution. The bearish MACD crossover and potential head-and-shoulders formation keep the $55 support level firmly in focus.
If bulls can reclaim $64 and maintain momentum, confidence could return quickly.
But if $55 fails, another wave of selling pressure could emerge, placing the $40–$45 region back on traders’ radar.
For now, Hyperliquid remains one of the most closely watched assets in crypto, with whales and technical analysts telling very different stories about what comes next.
