Hyperliquid’s HYPE token has come under pressure after one of the strongest cryptocurrency performances of 2026, with large whale unstaking activity, weaker institutional demand, and bearish technical indicators adding to short-term uncertainty.

HYPE recently traded near $70 before sliding sharply toward the $58 area. The move surprised many traders and raised fresh questions about whether additional selling pressure could follow. Despite the latest correction, HYPE remains one of the year’s top-performing cryptocurrencies, with gains of more than 129% since the start of 2026.

Whale Unstaking Raises Selling Pressure Concerns

HYPE has declined roughly 15% over the past week, including a 7% drop in the last day. The pullback follows several major unstaking transactions involving prominent crypto investment firms, drawing attention from market participants watching large-holder activity. In token markets, unstaking does not necessarily mean an immediate sale, but it can make previously locked tokens liquid and available to move to exchanges or custodial venues.

According to Lookonchain, Multicoin Capital transferred nearly 400,000 HYPE tokens to Coinbase Prime while requesting another 212,000 tokens for unstaking. Additional blockchain data showed that three Multicoin wallets unstaked almost 1.96 million HYPE, worth approximately $120 million, after holding the positions for nearly two months.

The timing of the transactions has been closely watched across the crypto community. Only weeks earlier, Multicoin had published a bullish report that projected a long-term HYPE price target of $319. On-chain data indicates that average purchases occurred near the $30 level. If tokens are sold near current prices, the positions would represent substantial profits, prompting traders to question whether profit-taking has already begun.

ETF Outflows and Technical Signals Add Pressure

Institutional demand has also weakened alongside the whale activity. Spot HYPE ETFs recorded net outflows of 11,210 tokens on July 21. Earlier in the month, investors withdrew more than 90,000 HYPE during the largest daily outflow. Continued withdrawals could reduce buying support in the coming sessions, especially when large holders are also moving tokens out of staking.

Technical indicators have also turned more cautious. HYPE recently broke below support from a symmetrical triangle pattern that had guided price action for several weeks. The Relative Strength Index has fallen near 40, signaling weaker momentum. The Chaikin Money Flow indicator has also turned negative, suggesting that capital continues to leave the market.

The next key support area sits between $54 and $55. Buyers would need to defend that zone to prevent further weakness. A successful rebound from that level could lift HYPE toward $63, followed by another attempt at the $67 to $70 range.

If HYPE fails to hold the $54 to $55 support area, the token could face another decline toward $48. For now, market conditions remain mixed, with whale activity drawing attention, ETF flows weakening, and technical indicators favoring caution in the short term. The next few trading sessions are expected to show whether buyers can regain control or whether sellers extend the correction.