HyperLabs Unlocks $23.46M in HYPE Tokens Amid Persistent Selling Pressure on Hyperliquid

Hyperliquid ($HYPE) has struggled to sustain upward momentum in recent sessions. A recent rally attempt stalled after the altcoin faced rejection at the $57 level, triggering another pullback. At the time of writing, $HYPE was trading at approximately $54, representing a 3.3% decline on the daily charts. Prior to this dip, the token had been trending higher, gaining 4.9% on the weekly timeframe. Hyperliquid operates as a Layer 1 blockchain and decentralized perpetuals exchange, and its native token $HYPE plays a central role in the platform's staking and governance mechanics, making supply dynamics particularly consequential for market participants.

HyperLabs Unlocks 433,025 $HYPE

While $HYPE already faces considerable downside pressure, on-chain data indicates that HyperLabs has taken a step that may intensify the trend. According to blockchain analytics platform Lookonchain, HyperLabs unlocked an additional 433,025 $HYPE tokens valued at approximately $23.46 million. Following the unlock, the tokens have been gradually deposited into cryptocurrency exchanges, including Flowdesk and OKX.

Token unlocks — scheduled releases of previously vested or locked tokens — are closely watched events in crypto markets because they increase the circulating supply available for trading. When unlocked tokens are moved to exchanges, market participants often interpret the activity as a precursor to selling, since assets held on exchanges are more readily liquidable.

Historically, such exchange deposits from HyperLabs have preceded periods of selling activity. This pattern has raised concerns that the recent unlock could place additional pressure on $HYPE, which has already exhibited signs of weakness.

Whale Accumulation Counters Selling Pressure

Amid the prevailing sell-off, large holders of $HYPE have stepped in to absorb some of the downward pressure. According to on-chain analytics provider Onchain Lens, a newly created wallet withdrew 197,360 $HYPE tokens worth roughly $10.69 million from Coinbase.

This accumulation by whales comes at a time when sellers have maintained dominance in the market. Data on Hyperliquid's spot buy-sell volume shows that the market delta has remained negative for three consecutive days. Over the most recent 24-hour period, sell volume climbed to approximately 297,000 $HYPE compared to 229,000 in buy volume, pushing the market delta to negative 68,000. A sustained negative delta is widely interpreted as an indicator of strong selling pressure.

Should whale accumulation continue, it could help absorb the excess supply. However, the extent to which large buyers can offset the broader selling trend remains to be seen. The tension between token unlock-driven supply inflows and whale demand is a dynamic that frequently shapes price action for tokens undergoing scheduled release schedules.

Technical Indicators Reflect Bearish Conditions

Technical momentum indicators for $HYPE point to sustained downward pressure. The Relative Strength Index (RSI) has remained in bearish territory for three consecutive weeks and was last recorded at 42, suggesting that sellers maintain significant control over near-term price action.

Additionally, $HYPE is trading below its 50-period simple moving average (SMA), further signaling short-term downside momentum. Together, these indicators reflect bearish conditions and suggest the possibility of continued market weakness.

If selling pressure persists, $HYPE could move toward the $51 level, notwithstanding the recent whale purchases.

Summary of Key On-Chain Activity

HyperLabs unlocked an additional 433,025 $HYPE tokens worth approximately $23.46 million and initiated deposits into exchanges, raising concerns about potential sell-offs. Separately, a newly created wallet withdrew 197,360 $HYPE tokens valued at roughly $10.69 million from Coinbase, indicating continued whale accumulation amid the broader market downturn.