HYPE Funding Reversal Signal: Large Investors Redeem, Spot Net Inflows, and Downside Risk Worsens

RektRecovery · 2026-01-16T03:20:12+00:00

Recently, Dragonfly Capital redeemed 25,989.71 HYPE tokens from major exchanges, approximately $648,600, which is a routine fund transfer rather than a market signal. Currently, spot funds inflow is $538,750, possibly indicating selling pressure. HYPE faced resistance at $28; if support is broken, it may decline to $25 and $22. The open interest in the futures market has decreased, indicating increased risk aversion, with investors maintaining a defensive stance. Selling pressure is not out of control, but HYPE still has room to decline.

RektRecovery

2026-01-16 03:20:12

Abstract generation in progress

【Crypto World】Data from a leading exchange shows that Dragonfly Capital recently redeemed 25,989.71 HYPE tokens, equivalent to approximately $648,600. What is the nature of this operation? In terms of scale and method, it is a routine transfer of custodial funds rather than a market signal of accumulation.

More noteworthy is the spot market situation — the fund flow has reversed, with a net inflow of $538,750, which typically indicates that selling pressure may be building up.

On the technical side, HYPE faced significant resistance around $28, with a downward trend. If support is broken, the next key level is $25. Below that, around $22 may provide some technical support.

The signals from the futures market are also worth noting — open interest has decreased by 7.91%, currently standing at $1.31 billion. This suggests that market risk aversion is intensifying, with investors adopting a defensive stance. However, the liquidation volume remains low, indicating that while selling pressure exists, it is not out of control. This means HYPE still has room to decline further before fully stabilizing.

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GasGuzzler

· 4h ago

Dragonfly Capital redemptions? It's just a transfer of custody, the real focus should still be on the spot market. Are the big players accumulating or distributing? Looking at the net inflow data, the trend doesn't seem quite right. Is $28 really the top? If it drops to $22, should we keep buying the dip? Contract volume shrank by 7.91%, this rhythm feels a bit strange... It seems like a change is coming. Is selling pressure building up? No way, entering now would be like inviting death.

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GasFeeCrier

· 23h ago

Large holders redeeming is not a big deal; the real signal is the net inflow of spot market... Is this wave going to fall? --- If it can't break $28, then we should look downward; feels like $22 is the bottom? --- Open interest has shrunk by 7.91%, the market is running... --- Transfer of custody isn't the same as absorbing buy orders; this wave feels a bit fake --- The strong inflow of spot market is really suspicious, should I prepare to buy the dip or run? --- $1.3 billion in contract size isn't small, but the term "risk-averse sentiment" sounds alarming --- Dragonfly's redemption of this amount is hardly worth mentioning; the key is still the action on the spot side --- $25 is the critical support; if it breaks, it's dangerous

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PermabullPete

· 23h ago

It's the same narrative again, net inflow = selling pressure. I'm tired of hearing this logic. Large investors redeeming causes an immediate drop. Who still believes this? 🤔 If $28 can't hold, why would it keep falling? Isn't a rebound at the bottom appealing? A 7% contract shrinkage is called risk aversion? Come on, it's just a mouse trading tactic. This time, it's really different. I went all-in.

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BearHugger

· 23h ago

Large holders redeeming means they are trying to dump the market, I've seen this trick many times. The net inflow of spot trading is actually accelerating the bottom-fishing pace. Just wait and watch the show. If $28 can't hold, it will drop straight to $22. There's really no suspense.

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BlockchainGriller

· 01-16 03:36

Is large holder redemption not considered accumulation? Then the net inflow of spot trading and selling pressure is just a joke. If $28 can't hold, it's really time to get off. Contract size shrank by 7.91%, this wave is going to be rough.

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OvertimeSquid

· 01-16 03:28

Large holders redeem, just go ahead, the key is the spot net inflow... Feels like something might go wrong. $28 is really hard to hold at this level, if it breaks, it will head straight to $25. The contract volume is still shrinking, it feels like everyone is slowly offloading. I'll mark $22 first, and see if I can catch the bottom later.

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MidnightTrader

· 01-16 03:27

Large investors redeeming, just go ahead and redeem. The key issue is that the net inflow of spot market signals is a bit unstable, it feels like a dump is coming. --- If 28 can't hold, then it really depends on 25. How it rebounds then remains a question. --- The open interest has decreased across the board. The market sentiment is indeed poor, so caution is still necessary. --- Every time I see this kind of capital flow reversal, I wonder: are retail investors just bagholders or can they really bottom fish? --- Dragonfly's recent moves aren't really anything special, just routine position shifting. The net inflow, on the other hand, is really annoying. --- Whether 22 can hold is uncertain; it seems like it will continue to test the bottom. --- It's another case of risk aversion... Has this round already started so quickly? Just a few days ago, everyone was bullish. --- Basically, it's going to fall. Don't look at so much data; if you take it seriously, you'll lose.

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