HYPE breakout return may be on as freshly minted whale goes long on Hyperliquid

A new whale opened a 10X leveraged position on HYPE, as the token hovered around $38. After days of weakness, HYPE is setting expectations for a shift to a higher range. 

A newly created wallet set up a HYPE long position on Hyperliquid. The trader is unknown so far and bears no connection to the known wallets of Hyperliquid stars like James Wynn or Aguila Trades. Wynn has in fact sold some of his staked HYPE to fund further trading and is currently long on BTC.

The brand-new whale deposited $4.16M USDC, which was initially funded through a null address. Later, the funds were used to go long on HYPE and for smaller spot purchases. 

A newly created wallet deposited $4.16M $USDC into #HyperLiquid and opened a $HYPE long position with 10x leverage.https://t.co/ar7KpMrQbb pic.twitter.com/b86gTfkwqk

— Onchain Lens (@OnchainLens) July 4, 2025

The whale’s position is nominally valued at just above $2M, though the liquidation price is unknown. The whale position is considered relatively small and may not be directly attacked, yet remains a signal of faith in HYPE. 

Previously, whales opened HYPE positions during the rally toward $45, but this time, long positions may be riskier. Most of HYPE activity is limited to Hyperliquid, leading to potential market manipulation. 

HYPE may see higher levels ahead

HYPE is still within a small distance of its recent peak around $45. Open interest for HYPE is still around $1.6B, with no dramatic changes in the past few days. However, traders shifted to a 65% long positions against 35% short, suggesting an expected breakout. 

The long/short ratio for HYPE varies wildly. For most exchanges, the ratio is balanced, but on Hyperliquid, there is an anomalous predominance of shorts. The ratio is lower compared to all other exchanges, suggesting HYPE may also see a short squeeze. 

Additionally, HYPE is dissolving its limit order ceiling, with fewer traders posting limit orders at $50. HYPE is seen as capable of moving to a higher range, mostly due to the predictable burning of fees. 

More bullish predictions see HYPE climb as high as $100 on direct whale purchases. Hyperliquid is also rising in the ranks, competing with older spot and derivative platforms.

HYPE ownership is also a tool to share in the fees generated by Hyperliquid. The perpetual DEX platform produces up to $2M in daily fees, with consistent daily activity.

Is Wintermute getting active on Hyperliquid?

During its first year of rapid growth, Hyperliquid tapped demand from risky traders and anonymous whales. This time, the platform may be drawing in market makers. 

In the past day, a wallet identified as probably belonging to Wintermute bridged $8.3M in USDC from Arbitrum and deposited the stablecoins to Hyperliqiod. 

Wintermute’s main portfolio does not report any HYPE ownership. However, during previous market cycles, the leading market maker has also sold HYPE from the same wallet. Previous reports have estimated Wintermute holds around 4.17M HYPE and has frequently entered the market since January 2024. 

The actions of Wintermute have happened in the background, with rumors that the market maker is mostly long on HYPE. The recent inflow of USDC may add to the long positions on HYPE, setting expectations for a return to the previous levels above $40.

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