- Arthur Hayes sold $18M HYPE position after previously calling for a $150 price target.
- HYPE dropped from $75 to $67 despite strong ETF inflows and institutional activity.
- Key support sits at $59–$60 while resistance near $83–$95 defines trend direction.
Hyperliquid’s HYPE token faced sharp selling pressure after a major reversal from Arthur Hayes. The BitMEX co-founder recently sold his entire position worth $18.02 million. This move shocked traders since he had just projected a $150 target for the token. On-chain data confirmed the sale of 247,334 HYPE tokens. Price reacted quickly, sliding from record highs near $75 down toward $67. Sentiment shifted fast as traders reassessed risk levels.
Hayes Exit Triggers Market Repricing
Arthur Hayes shared three main reasons for leaving the position on social media platform X. He pointed to rising energy costs linked to geopolitical tension involving Iran. He also highlighted upcoming AI IPOs expected before the third quarter. A third concern focused on market overheating between now and September. Hayes promised a deeper breakdown in an essay titled “Reality Test.” At the time of sale, HYPE traded near a valuation multiple of 25 times projected fee revenue.
Analysts noted that this level sits near yearly highs for pricing efficiency. Researcher Thielen added that protocol revenue still trails earlier peaks. A large token unlock scheduled for June also adds potential supply pressure. Despite the pullback, HYPE remains one of the strongest performers this year. The token still holds a 166% gain year-to-date. That performance keeps long-term holders engaged even during short-term volatility.
Strong Fundamentals Clash With Short-term Pressure
HYPE continues showing strong platform growth even during price weakness. May perpetual futures volume reached 6.63% of global centralized exchange perp volume. That marks a record level for the protocol. Relative volume against Binance also climbed to 14.4%, another all-time high. Institutional participation continues expanding across the ecosystem. Grayscale plans to launch a Hyperliquid ETF under the ticker HYPG with a 0.29% fee.
Existing ETF products THYP and BHYP already attracted $141 million in net inflows. Bitwise CEO Hunter Horsley also confirmed over 7.7 million HYPE tokens are now staked through Bitwise validators. Price action now focuses on key technical levels. Support sits in the $59 to $60 range. Resistance appears between $83 and $95. A strong breakout above that zone could reopen upside toward $110 and $130.
Whale positioning data shows a narrowing gap between long and short exposure. The difference now sits near $0.01 billion, signaling cautious positioning among large traders. Market participants appear to be waiting for clearer direction before committing to new trends. HYPE now sits at a crossroads between strong fundamentals and short-term uncertainty. Buyers defend support, while sellers test conviction after the high-profile exit.
