Bitwise accumulated 28,085.8 HYPE, worth approximately $1.52 million, from Nonco for its ETF clients.
The buying added institutional demand just as HYPE was making its way through a wider price correction.
Exchange outflows tightened available HYPE supply
The supply case for Bitwise’s latest institutional purchase got a boost from exchanges as well.
HYPE’s negative Spot netflows for the most recent period on record stood at around $1.46 million. The negative figure implied more tokens were withdrawn from exchanges than added to them, thereby decreasing the liquidity right away for exchanges.
This movement coincided with Bitwise’s accumulation as both moves moved tokens off easily traded markets.
Importantly, netflows were not particularly strong in recent months, relative to the significantly bigger fluctuations in June. But the new reading did not signal resurgent inflows of exchange but continued the withdrawal trend.
Short sellers absorbed the liquidation pressure
Derivatives positioning provided another layer of support, with short traders taking most of the liquidation losses.
At the time of writing, short liquidations stood around $59.25K, and long liquidations were at a mere $6.91K.
The short position imbalance has pushed the number of short liquidations to over 8 times the number on the long side. The sum for overall liquidation was, however, relatively small in comparison with the more substantial increases that were seen previously.
A move upside may push more bearish players out of the market and bring in more buying pressure.
Can key support launch the next recovery?
After a sharp move down from July’s highs, HYPE had to defend the $53.79 support.
At the time of writing, the token hovered around $54.88 throughout the day, challenging the descending trendline region while maintaining the support level.
The recent candles have been squashed around this zone, which means that there’s some kind of battle that’s going on between the recovery buyers and the sellers that are still around.
Meanwhile, RSI was at 44.48 and moved above its moving average at 40.96, having bounced back from lower levels.
That did not get buyers anymore directionally solid, as the indicator still was under 50.
However, the improving RSI supported the stabilization developing above $53.79 rather than signaling renewed deterioration.
The break of this trendline would give visibility to $57.21, a price point that historically saw sellers break recovery attempts. After that, the next big structural barrier would be $60.00.
If the trendline doesn’t hold, prices may resume downward pressure with $51.20 offering the longer-term level of support.
Final Summary
- Bitwise accumulation and exchange outflows strengthened HYPE’s underlying supply-demand setup.
- Holding $53.79 keeps HYPE positioned for another challenge toward $57.21.
