Hyperliquid (HYPE) Price May Face Another 10% Drop, Here’s Why

Quick Take

• With a 4.50% dip, Hyperliquid (HYPE) price marked its third consecutive red daily candle and reached a make-or-break level of $85.10.
• Amid this bearish move, Hyperliquid Labs has finished unstaking 3.75 million HYPE tokens worth $330 million after seven days.
• In addition to this potential sell-off, a whale that bought 257,928 HYPE at just $3.50 is now selling the tokens for a profit, while Multicoin offloaded $5.92 million worth of HYPE to Coinbase Prime.
• From a price-action perspective, HYPE could see another 10% dip and may fall to $76 if it fails to sustain the $85.10 level.

Hyperliquid (HYPE) extended its bearish streak and appears poised to continue its downward trend. This bearish outlook seems to be driven by institutional and whale activity, with both groups reportedly dumping millions of dollars’ worth of HYPE tokens onto exchanges.

Meanwhile, today’s price decline has triggered a breakdown below the key support level of $85.10, potentially opening the door for further downside.

Institutional and Whale Interest Turn Bearish

As reported by Onchain Lens, Hyperliquid Labs has unstaked 3.75 million HYPE tokens worth over $331.40 million over the past 24 hours. As per the post on X, this token unstaking will not be sold on the open market. Instead, the team has arranged an OTC deal with an undisclosed institution.

The report on X further stated,

“So far, 1.875 million HYPE has been distributed across the 5 OTC buyer wallets. Each wallet received 375K HYPE, meaning 50% of the 3.75 million HYPE OTC allocation has been distributed.”

Alongside Hyperlabs, Multicoin has dumped 67.5K HYPE tokens worth $5.92 million into Coinbase Prime. With this transfer, the firm has moved a massive total of 760.52K HYPE worth $62.99 million over the past four weeks.

Meanwhile, a crypto whale who bought 257,928 HYPE for $902K two years ago at an average price of $3.50 has also begun profit-taking. As per the report from Lookonchain, the whale deposited 131,421 HYPE tokens worth $11.77 million into Kraken over the past week at an average price of $89.56, generating a profit of over $23 million and nearly a 26x return.

In addition to institutional and whale selling, demand for HYPE on Wall Street has also begun to fade. As per data from SoSoValue, U.S. spot HYPE ETFs (exchange-traded funds) have recorded outflows of $9.70 million, the highest level since September 9, 2026.

These developments appear to be the key factor behind HYPE’s price decline. Today, the asset has fallen 4.50% over the past 24 hours and is trading at $85.30. Despite the price decline, HYPE’s trading volume surged by over 25% to $3.06 billion during the same period, indicating increased market activity amid the ongoing downturn.

The question is what’s next for HYPE price. Will it continue to decline or do these whales and institutions have negative insider information? Or is this simply routine profit-taking?

Hyperliquid (HYPE) Price Chart Eyeing 10% Fall

The TradingView daily chart shows, HYPE’s short-term bias has turned bearish, as the asset has broken below the key support level of $85.10 and closed the daily candle below it. The $85.10 level has acted as strong support since September 18, 2026, and previously, whenever the price reached this level, it reversed upward.

Following the breakdown, the price chart turned bearish. If HYPE remains below the $85.10 level, there is a strong possibility of another 10% decline, potentially pulling it down to $76 in the coming days.

On the other hand, if the asset reclaims the $85.10 level and closes a daily candle above it, the bearish thesis could be invalidated. In this case, history could repeat itself, leading to a price reversal.

Despite recent selling pressure, HYPE price continues to trade above the 200-day Exponential Moving Average (EMA), indicating that the asset's broader trend remains bullish despite recent selling pressure.