Key takeaways
Hyperliquid (HYPE) fell 4% to approximately $78 on Friday, extending its pullback.
Hyperliquid Strategies (PURR) has applied for futures commission merchant (FCM) registration to support regulated perpetual futures trading for US customers.
Four large whale wallets reportedly realized a combined $5 million in profits after closing their HYPE positions, according to Santiment.
Hyperliquid (HYPE) declined 4% on Friday, trading around $78 as profit-taking by large investors weighed on the token despite fresh developments surrounding the protocol’s potential expansion into the US derivatives market.
The decline follows a rally that briefly lifted HYPE toward $97 before selling pressure returned.
Blockchain analytics firm Santiment reported that four large wallets collectively realized approximately $5 million in profits after exiting their positions, adding to concerns about the sustainability of the recent price recovery.
Hyperliquid Strategies seeks CFTC approval for US perpetual futures
Hyperliquid Strategies announced its FCM application alongside its third-quarter financial results released Thursday.
The company intends to establish a regulated intermediary capable of carrying US customer accounts for permissioned derivatives markets deployed on Hyperliquid’s infrastructure.
The proposed arrangement would operate under the Commodity Futures Trading Commission’s regulatory framework, subject to the necessary approvals.
Under the planned structure, independent operators could launch and manage permissioned markets through Hyperliquid’s HIP-3 framework.
These operators would be responsible for meeting applicable regulatory requirements, while the underlying blockchain would continue functioning as a neutral infrastructure layer.
If approved, the FCM registration could allow Hyperliquid Strategies to participate in bringing perpetual futures products to US customers.
Despite the positive regulatory developments, Hyperliquid’s native token has struggled to sustain its recent gains.
Santiment reported Thursday that four large whale wallets had closed their HYPE long positions, collectively realizing approximately $5 million in profits.
The transactions followed a strong rally that briefly pushed HYPE toward $97. According to Santiment, citing Score Arena, one wallet had accumulated HYPE since late May before exiting its entire position of approximately 310,000 tokens.
The address reportedly sold roughly $225,000 worth of HYPE at five-minute intervals while the token traded between $94 and $95.
The strategy generated approximately $2.4 million in realized profits, according to the reported data.
Two other large wallets also exited positions following the rally. One reportedly earned around $987,000 from trading 98,000 HYPE, while another realized nearly $1 million from approximately 140,000 tokens.
Hyperliquid technical analysis: HYPE struggles below key moving averages
Hyperliquid’s daily chart reflects renewed bearish pressure following the rejection from its recent highs.
At approximately $77, HYPE trades below its short- and medium-term Exponential Moving Averages (EMAs), suggesting that sellers continue to dominate the near-term trend.
The cryptocurrency also failed to sustain a breakout above a descending resistance trendline, reinforcing concerns about the strength of the previous rally.
Momentum indicators support the bearish outlook. The daily Relative Strength Index (RSI) stands near 42, below the neutral 50 threshold.
Meanwhile, the Stochastic oscillator has declined toward 23, placing it close to the oversold territory.
Hyperliquid faces immediate support at $75.69, a horizontal level located just below Friday’s reported trading price.
A sustained decline below this area could increase selling pressure and expose the next support at $67.63. If bearish momentum intensifies, the token could extend its correction toward $61.16.
On the upside, immediate resistance is positioned at the 100-day EMA around $78.10. Reclaiming this level could provide an early sign that selling pressure is easing.
However, buyers would then face a stronger resistance cluster formed by the 20-day and 50-day EMAs between $82.33 and $82.51.
A sustained recovery above these barriers could open the door to the next horizontal resistance at $85.04.
Beyond that level, the recent resistance near $97.84 would become a potential upside target if bullish momentum strengthens considerably.
