Hyperliquid’s native token HYPE has dropped nearly 24% in the past 30 days, weighed down by continued selling pressure from institutional investors. Recent on-chain data highlights a pattern of large transfers from major funds to centralized exchanges, signaling possible preparations for further distribution.
Institutional Moves Shake the Market
Big players like Multicoin Capital moved over 137,100 HYPE tokens, valued at roughly $7.5 million, onto Coinbase Prime in a single 10-hour window. Bitwise followed with an additional 22,463 HYPE tokens, approximately $1.23 million, sent to the same platform around the same time. Shifting tokens onto exchange infrastructure often points to intentions to boost liquidity or sell, even though deposits alone don’t guarantee immediate sales.
This institutional offloading has persisted throughout July, making it tougher for buyers to support rallies despite occasional market strength. The constant flood of tokens onto exchanges creates an overhead supply that stifles upward momentum. As a result, HYPE recently fell below a key support near its 100-day moving average and now trades close to $54, inching toward its next major support level around the 200-day moving average.
Market Sentiment and Technical Impact
The broader crypto market remains uncertain, with no clear trend emerging to counteract the selling pressure on HYPE. This dynamic keeps sentiment cautious. Even with occasional rebounds, the persistent selling from institutions maintains a bearish undertone for the token.
Similar patterns of institutional movement have impacted other digital assets, highlighting the importance of tracking wallet activities for market signals. For instance, Bitcoin ETFs recently saw inflows, contrasting with ongoing withdrawals in Ethereum funds, showing how capital flow varies widely across crypto sectors.
This information is for educational purposes only and does not constitute financial advice.
