Hyperliquid’s native token HYPE quietly became one of the more interesting altcoin stories this week, rebounding nearly 5% to reclaim the $25 level. The move came even as market attention was largely focused on Bitcoin’s push toward $90,000, highlighting renewed interest in select altcoins rather than just majors.
After dipping below $22 over the past week, HYPE’s recovery was driven by a combination of on-chain whale activity, rising trading volume, and improving sentiment across the broader altcoin market.
Why HYPE Price Moved Higher
On-chain data suggests that large buyers stepped in aggressively. Blockchain tracker Lookonchain reported that two whale wallets each deposited roughly $5 million in USDC into Hyperliquid on December 22, signaling intent to accumulate more HYPE.
One wallet currently holds over 214,000 HYPE, valued at approximately $5.4 million, while still keeping more than $5.5 million in USDC available for future buys. A second wallet holds around 102,000 HYPE, worth about $2.6 million, alongside nearly $2.5 million in stablecoins ready to deploy. Lookonchain also noted two additional $5 million USDC deposits within the same hour, reinforcing the accumulation narrative.
This influx of capital coincided with a 15% surge in daily trading volume, helping push HYPE back above the $25 mark. Analysts say that if altcoin momentum continues, the token could attempt a move toward the $30 resistance zone, especially if whales continue to provide strong bid support.
Beyond HYPE, several altcoins — including Kaspa, Sei, Sky, and Midnight — also posted notable gains, suggesting that risk appetite is expanding beyond Bitcoin.
Insider Trading Concerns and What Comes Next
The rebound follows a turbulent period for HYPE, which fell more than 14% over the prior seven days amid allegations of insider trading. Hyperliquid Labs responded publicly, denying any wrongdoing by current team members. The company clarified that the wallet accused of shorting HYPE belonged to a former employee who was terminated in Q1 2024.
Hyperliquid reiterated that team members are prohibited from trading HYPE derivatives and emphasized a zero-tolerance policy toward insider trading. Co-founder Illiensic reinforced this stance in a Discord update, stating that employees cannot trade HYPE derivatives, misuse insider information, or share it with third parties.
Looking ahead, HYPE’s short-term direction will depend on whether whale accumulation continues and if altcoin sentiment remains strong. While renewed buying pressure and higher volume have restored momentum, ongoing regulatory and reputational scrutiny could keep volatility elevated in the near term.
