$23.4 Million HYPE Unlock Puts Recovery At Risk

Key Insights:

• HyperLabs unlocked 433,025 HYPE worth $23.46 million according to Lookonchain, an on-chain data tracker. The unlocked tokens were reportedly being transferred into exchanges.
• News of the unlock was followed by a 1.25% HYPE price decline.
• At press time, a blockchain analytics tool flashed a bearish signal, showing that the top 100 addresses (“smart money”) are backing short bets and offloading their holdings.

The $23.46 million Hyperliquid (HYPE) token unlock has put the price recovery at risk, even after a bullish breakout. Recently, crypto transaction tracker Lookonchain shared a report on X disclosing that HyperLabs had unlocked a massive 433,025 HYPE tokens worth $23.46 million.

The report stated that the lab was gradually depositing these unlocked HYPE tokens into exchanges.

Not only is the token unlock adding selling pressure to the HYPE price, but ongoing developments involving crypto giants, including those with consistent profits, are also strengthening this bearish outlook.

Hyperliquid (HYPE): On-Chain and Derivative Flashes Bearish Signal

According to blockchain analytics tool Nansen, over the past 24 hours, the top 100 HYPE addresses downsized their holdings by 1.80 million tokens, equivalent to a 4.27% decline compared to the previous day.

Meanwhile, smart money followed the same trend, reducing its HYPE holdings by 441,502 tokens, a 3.99% decline from the previous day. Lastly, profitable traders also reduced their positions by 28.83% during the same period.

From the derivatives side, it appears that traders are also following the current market sentiment. At press time, CoinGlass’s HYPE OI-weighted funding rate had turned negative at -0.0002%, indicating sellers’ dominance and suggesting that bearish sentiment is gradually building among traders.

$53.68 and $55.90 were the two key levels, and traders at these levels appear to be over-leveraged. Data from the HYPE exchange liquidation map shows that traders at these levels have built $6.02 million worth of long-leveraged positions and $6.05 million worth of short-leveraged positions.

These bets suggest that sellers are dominating the asset, while bulls seem to be exhausted.

All these developments together point towards the bearish side and strengthen the downside risk.

At the time of filing this report, HYPE had declined 1.25% to $54.55. Meanwhile, the asset’s trading volume during the same period rose 15% to $134.65 million, indicating heightened participation from traders and investors.

This surge in trading volume reflects heightened market activity among market participants in the current trend.

The combination of declining HYPE holdings, negative funding rates, and elevated trading volume suggests that market participants are becoming increasingly cautious about the token’s near-term price outlook.

Hyperliquid (HYPE) Price Faces Bearish Pressure

TradingView’s daily chart for HYPE shows short-term bearish bias, as the asset failed to continue its upward momentum even after a bullish breakout. Recently, on August 4, 2026, HYPE broke out of a descending trendline that it had been following since July 7, 2026, but failed to sustain its upward momentum.

The price appeared to be retreating towards the key support level of $52. This level is has become a crucial support level for the asset.

If HYPE fails to clear the $57.70 level, it could fail to continue its upward momentum. In fact, in this scenario, the asset may see a downside move and may reach the $52 level in the coming days.

However, the trend shift and potential recovery could occur if the HYPE price clears the $57.70 local resistance level. If this occurs, the asset could end its bearish trend and may regain upward momentum.

As of now, the HYPE price remains above the 200-day Exponential Moving Average (EMA), indicating that the bullish structure remains intact and buyers are in control.