Hyperliquid has traded within a descending channel since it faced rejection at $72 three weeks ago.
Over this period, all attempted rebounds have failed, reflecting sustained bearish pressure after every slight gain.
As of this writing, Hyperliquid traded around $54, up 0.65% on the daily chart. However, it remained down 7.3% weekly. The altcoin has continued to decline, largely driven by rising sell pressure from major investors.
Why are Hyperliquid whales selling?
As Hyperliquid’s [HYPE] downtrend continued, some whales turned bearish and started selling.
According to Lookonchain, one whale returned to the market and unstaked its HYPE holdings. The whale unstaked 1.02 million HYPE, worth $57.6 million, and deposited it into FalconX and Coinbase Prime.
The investor purchased these tokens 17 months ago at an average price of $18.
Therefore, the position carried more than $39 million in unrealized profit before any confirmed sale.
That was not all. The whale also unstaked 1.89 million HYPE, worth $105.9 million, from another wallet. The decision could reflect skepticism or asset reorganization. However, unstaking alone does not confirm an immediate sale.
The second tranche had not been deposited into any exchange at press time.
Even so, the whale activity captured the market’s attention and could spark fear among smaller traders.
Why are more investors unstaking?
Notably, the whale was not an isolated case. Unstaking has become increasingly common among individual and institutional investors.
A week ago, AMBCrypto reported that 4.09 million HYPE, worth $241 million, was pending unstaking. Since then, that figure has more than doubled to 9.1 million HYPE, worth $496.6 million.
Additionally, Total Staked HYPE dropped from 438.7 million to 435.9 million. Rising pending unstakes and declining staked HYPE suggested that some long-term holders were reducing their exposure.
However, unstaking does not confirm that every holder intends to sell.
Could HYPE fall to $52?
Investors were either selling unstaked HYPE or waiting after unstaking, adding uncertainty around future supply.
As a result, the Aroon Down line climbed to 92%, while the Aroon Up line declined to 28%. This setup indicated that HYPE formed lower lows more frequently than higher highs, reflecting strong downside pressure.
The Relative Strength Index (RSI) also dropped deeper into bearish territory, reinforcing the weakness.
Together, both indicators suggested that the downtrend could continue. If selling pressure persists, Hyperliquid may drop toward the next support at $52.
Final Summary
- One whale deposited $57.6 million in HYPE into FalconX and Coinbase Prime.
- The same whale unstaked another $105.9 million, although those tokens had not reached exchanges.