Hyperliquid (HYPE) fell 4% on Friday, trading near $78 as profit-taking by large holders weighed on the token, even as the protocol moved forward with plans that could expand its derivatives offering to United States customers. The pullback extends a retreat from a rally that briefly carried HYPE toward $97 before selling pressure resurfaced.

Blockchain analytics firm Santiment reported that four large wallets collectively realized approximately $5 million in profits after closing their HYPE positions, adding to concerns about the sustainability of the token's recent recovery.

Hyperliquid Strategies seeks CFTC approval for US perpetual futures

Hyperliquid Strategies (PURR) announced its application for futures commission merchant (FCM) registration alongside its third-quarter financial results released Thursday. The company aims to establish a regulated intermediary capable of carrying US customer accounts for permissioned derivatives markets deployed on Hyperliquid's infrastructure.

FCM registration is the standard licensing pathway with the CFTC for intermediaries that carry customer accounts and process futures transactions in the US market. Perpetual futures — derivative contracts that trade without a fixed expiry date — rank among the most heavily traded instruments in digital-asset markets, which is why the prospect of regulated US access has drawn attention across the industry.

The proposed arrangement would operate under the regulatory framework of the Commodity Futures Trading Commission (CFTC), subject to the necessary approvals. Under the planned structure, independent operators could launch and manage permissioned markets through Hyperliquid's HIP-3 framework. Those operators would be responsible for meeting applicable regulatory requirements, while the underlying blockchain would continue to function as a neutral infrastructure layer.

If approved, the FCM registration could allow Hyperliquid Strategies to participate in bringing perpetual futures products to US customers. With the filing now pending, the CFTC's review process is the principal regulatory milestone to watch for the platform's US expansion.

Whale wallets cash out after rally toward $97

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, generating approximately $2.4 million in realized profits.

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. Tracking of this kind is possible because blockchain transactions are publicly visible, and whale flows are a routinely cited data point for analysts assessing holder behavior around sharp price swings.

Technical outlook: HYPE struggles below key moving averages

Hyperliquid's daily chart reflects renewed bearish pressure following the rejection from 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 token 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, while the Stochastic oscillator has declined toward 23, placing it close to oversold territory.

On the downside, 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 high near $97.84 would become a potential upside target if bullish momentum strengthens considerably.

Source: CoinJournal