A popular anonymous analyst at X (known as Pentoshi) said on Friday that he had started a small position in HYPE, HyperLiquid’s native token, and would only add to it if the price drops.
In an Oct. 17 post, he wrote that he had “nibbled” on spot HYPE below $34 and ended up filling about 20% of the positions he wanted. Spot means you have purchased the token itself without leverage, eliminating the risk of forced liquidation. He said he would “build up” near $28 and “go all in” below $30, noting that this is a scale approach where Space buys across levels rather than putting all its money into it at once.
He emphasized that this setting is within a broader downtrend. When he says “lower highs,” he means each rebound is below the previous peak, a classic bearish structure that often resolves with another leg lower. When he says “market structure is broken,” he is referring to support zones and a thin order book that have been damaged by last week’s volatility. These situations can exaggerate movements and create whip-like movements. Lesson: Keep the size small, avoid trying to find an exact bottom, and assume that the decline may overshoot.
Mr. Pentoshi also flagged a potential supply overhang from the unstaking queue. Networks that allow staking periodically unlock previously locked tokens. Selling some of these coins without re-staking could increase short-term selling pressure. He said he doesn’t know whether a quarter, a third or even less will come to market, so he is leaving his bid below the current price and letting the market take its course rather than looking for strength.
He added that he got a little “burned” by a recent ether trade that deviated from his rules (even if the bounce helped). Therefore, in the short term, the company is protecting itself by downsizing this position, setting pre-set bids, and minimal micromanagement, he added.
Hyperliquid is a decentralized exchange that runs on its own chain and is primarily used for perpetual futures, i.e. derivatives with no expiry date. Its token, HYPE, serves as both governance and economic stake. Owners can vote on upgrades, stake rewards, and benefit from a mechanism that ties trading activity and fees to the value of their tokens. In a nutshell, Hyperliquid is the venue. HYPE is a way for users to share their growth.
Prior to publication, HYPE was around $36.32, up 2.1% in the past 24 hours, according to CoinDesk Data.
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