A well-followed pseudonymous analyst on X (known as Pentoshi) said on Friday that he started a small position in HYPE, Hyperliquid’s native token, and will only add if prices fall.
In his Oct. 17 post, he wrote that he “nibbled” on spot HYPE below $34, filling about 20% of the position he ultimately wants. Spot means he bought the token itself without leverage, which removes the risk of forced liquidations. He said he would “load” closer to $28 and “go hard” below $30, a scale in approach where places buy across levels rather than committing all capital at once.
The setup, he emphasized, is part of a broader downtrend. By “lower highs,” he means that each rebound fails below the previous high—a classic bearish structure that often resolves with another leg down. When he says there is “broken market structure,” he points to damaged support zones and thin order books after last week’s volatility, conditions that can exaggerate moves and produce whipsaws. Takeaway: Keep size small, avoid trying to nail an exact bottom, and assume that dips can overshoot.
Pentoshi has also flagged a potential supply overhang from an unstable queue. On networks that allow staking, previously locked tokens are periodically unlocked; if some of these coins are sold instead of being redeveloped, short-term selling pressure may increase. He said he doesn’t know if a quarter, a third or less will hit the market, so he’s leaving rest bids below the current price and letting the market come to him instead of chasing strength.
He added that a recent Ether trade that deviated from his rules “burned” him a bit – although a jump helped – so he plays defense: smaller size, preset bids and minimal micro-managing of this position in the short term.
Hyperliquid is a decentralized exchange that runs on its own chain and is mainly used for perpetual futures – derivatives with no expiration. Its token, HYPE, acts as both governance and financial interest: holders can vote on upgrades, stake for rewards, and benefit from mechanisms that link trading activity and fees to the token’s value. In short: Hyperliquid is the meeting place; HYPE is how users share their growth.
According to CoinDesk Data, just before press time, HYPE was around $36.32, up 2.1% in the past 24 hours.
